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Weekly Review

A Weekly Guide to

Statutory Changes & Landmark Rulings

Goods and Services Tax

Case laws Municipal Corporation was liable to service
tax under category of ‘commercial or industrial
Constructi on of parking lot for construction service’.
Municipal Corporati on is liable Money transfer service provided in
to service tax as ‘Commercial India to customers of a foreign Co.
constructi on service’
was Export of service: HC

ANS Constructions Ltd. v. CST [2018] 89
taxmann.com 50 (New Delhi - CESTAT) CST v. Reliance Money Express Ltd. [2017]
88 taxmann.com 284 (Bom.)
The assessee was engaged in the construction
activities. It had undertaken the construction of The assessee had entered into an agreement
parking lots at Narender Cinema and Nehru with foreign company. It provided money
Garden for Municipal Corporation. It contended transfer services to its customers and recipients
that such activity was not liable to service tax in India. It received fees and charges as per
on the ground that these properties were of the agreement. It paid certain amount as
non-commercial nature. The department held service tax under protest and filed a refund
that such activity was liable to service tax claim by contending that service rendered by
under category of ‘commercial or industrial it would fall under the category of ‘export
construction service’. The assessee filed an of service’.
appeal in the Tribunal. The department rejected the refund claim of
the assessee. The assessee filed an appeal to
The Tribunal held that the parking lots were
used for commercial purpose and it could not the Commissioner (Appeals) and Commissioner
be considered as a non-commercial activity. (Appeals) allowed the appeal in favour of
Therefore, construction of parking lots for assessee. The Tribunal rejected the appeal

163
January 20 To January 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 41 u 57