Classification of service- In the instant case, the applicant have been awarded a works contract for Construction of New Adarsh Nivashi Shala/ School Hostel (324 Bed) / Staff Quarters and Kumar Chhatralay (300 Bed) at Village by the Road and Building Department in the Government of Gujarat.

The applicant has submitted that in their opinion, the said service of ‘Construction of  New Adarsh Nivashi Shala (Kumar) / School Hostel (324 Bed) / Staff Quarters and Kumar Chhatralay (300 Bed) at Village : Baben, Taluka : Bardoli, District : Surat”, merits classification under the said Entry at Serial Number : 3 (vi)(a) as well as 3 (vi)(b) of the Notification no. 11/2017 and the applicable rate is 12%.

It is required to be noted that vide Explanation to Serial No 3(vi) of said NT, 'business' shall not include any activity or transaction undertaken by the State Government in which they are engaged as public authorities. Thereby we find this activity undertaken by GoG out of the purview of business, as described at sr no 3(vi)(a) of Said NT. Also, School building is a structure meant for use as an educational establishment as described at entry at Sr no 3(vi)(b)(i) of said NT; and supply of Staff Quarters is covered at 3(vi)(c) of said NT.

Revenue submits that said civil structure may be used for commerce or business. This authority hold that a School building will be used by State Government for education and cannot be considered a commercial building. 

Held that-The activity of composite supply of works contract service by way of construction of school building, school hostel, college hostel merits classification at Serial Number 3(vi) of Notification Number 11/2017.