CESTAT holds that construction of hospital building is not taxable as ‘commercial or industrial construction’ service; Referring to CBEC Circular Nos. 80/10/2004-ST & 86/4/2004-ST and Madras HC ruling in G Ramamoorthi Constructions (I) Pvt. Ltd., CESTAT observes that construction of building for use as a hospital by a charitable organization is a non-commercial activity; Also dismisses demand towards GTA services availed during construction in SEZ in view of exemption prescribed u/s 26(1)(e) of SEZ Act, while finding the case to be ‘revenue neutral’; However, upholds liability in respect of GTA services availed in connection with construction of hospital, absent exemption to assessee as a ‘deemed service provider’; Accepts invocation of extended limitation period absent disclosure of said GTA activities in ST-3 returns, but same would not apply to show cause notice issued after Dept. came to know of assessee’s activity : Mumbai CESTAT
Citation: [TS-143-CESTAT-2018-ST]