Construction of ‘platforms' in APMC market prima facie cannot be held to be taxable under Commercial and Industrial Construction Service: CESTAT
A Service Tax demand of almost a crore along with interest and penalty was confirmed against the appellant by the CCE, Nagpur. The ground – that the appellant had undertaken construction of ‘platforms' for the Agricultural Produce Market Committee and this activity is liable to Service Tax under the head ‘Commercial and Industrial Construction Service'.
The appellant submitted that construction of simple platform in the open place is to facilitate the sale and purchase of agricultural produce i.e cotton and hence not liable to Service Tax under the proposed head. They also relied on the Board Circular 80/2004 dt. 17.09.2004.
The Bench observed -
"5. We find that applicant had constructed platform in the open place for platforms of Agricultural Product Market Committee. The platforms are used to facilitate the sale of cotton by the farmers. In these circumstances, prima facie we find that the applicant has made out a strong case in their favour. Therefore, the pre-deposit of the service tax, interest and penalty is waived and recovery of the same is stayed during the pendency of the appeal. The stay petition is allowed."
A crore of demand on the block waiting to be axed!