No Service Tax Payable On Construction Services Provided To Gujarat State Police Housing Corporation: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not payable on the construction services provided to the Gujarat State Police Housing Corporation for the construction of a residential complex for the police staff.

The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that the Gujarat State Police Housing Corporation Limited is 100% owned by the Government of Gujarat under the Ministry of Home Affairs, therefore it is a government organization.

The issue raised was whether the construction service provided to Gujarat State Police Housing Corporation Limited for the construction of a residential complex for the police staff is liable to service tax or otherwise.

The department contended that the Gujarat State Police Housing Corporation Limited is not a government organization in Gujarat and is an independent company registered under the company’s act. Therefore, services provided to the Gujarat State Police Housing Corporation are subject to service tax.

The assessee contended that Gujarat State Police Housing Corporation Limited is 100% owned by the Government of Gujarat under the Ministry of Home Affairs.

The Tribunal has allowed the appeal of the assessee and set aside the service tax demand.

Case Title: R D Contractor & Company Versus Commissioner of Central Excise & ST, Anand

Citation: Service Tax Appeal No. 10464 of 2015-DB

Date: 22.02.2023

Counsel For Appellant: Mrugesh Pandya

Counsel For Respondent: Kalpesh P Shah

Click Here To Read The Order