Order Date: 8 August 2022

Facts-

• The Appellant, M/s. Simplex Projects Limited has undertaken construction of accommodation for urban employed youth & women vendors, in terms of the contracts awarded by M/s. National Building Construction Corporation Limited (NBCC) on behalf of the Ministry of Urban Development & Poverty Alleviation, Govt. of India. 
• The Show Cause Notice was issued which has been adjudicated by the Ld. Commissioner vide Order-in-Original confirming the demand of Service tax along with penalty under the category of ‘Commercial or Industrial Construction Services’.
• Being aggrieved the appellants filed this appeal.

Issue-

• Whether the demand of Service tax under the category of Commercial or Industrial Construction is sustainable?

Order-

• The Tribunal observed that the issue can be decided on the point of classification alone.  The contract is inclusive of supply of goods. The Ld. The Commissioner while taking note of the fact that the construction service is inclusive of supply of goods has extended the benefits of abatement to exclude the value of goods so as to arrive at the assessable value for raising demand of Service tax. 
• The Tribunal relied in the case of URC Construction (P) Ltd. vs. CCE, Salem 2017 (50) S.T.R. 147 (Tri -Chennai) and various other cases wherein the same issue has been already examined and it was held that appellant are not providers of 'commercial or industrial construction service' but of ‘works contract service', no tax is liable on construction contracts executed prior to 1st June 2007.
• Since the issue is no longer res-Integra, the demand of Service tax under the category of commercial or industrial construction cannot be sustained and hence, set aside.
• The appeals are allowed with consequential relief.