Merely because the Corporation is working on the principle of 'No profit No loss”” basis, the same cannot enure to the benefit of the appellant, who is a Contractor, extending his service as Contractor for the purpose of raising construction for the Corporation.
The service rendered by the appellant and the activity of construction by the appellant is not an activity of charity and is rather a contract for profit.
Section 25 of Finance Act — Service Tax- Construction Service – The appellant submitted that the learned Single Judge dismissed the writ petition after its pendency for a very long time when the issue raised was a legal one i.e. as to whether the appellant was liable for payment of any service tax which was the subject matter in dispute. The appellant has challenged the Orders dated 27.09.2010. The appellant submitted that keeping in view of Section 25 (b)(a) read with clause (d)(i) of Finance Act and further the clause 105 (zzq), the activity carried out by him did not relate to any commercial or industrial purpose. The court observed that the learned Single Judge has dismissed the writ petition on the ground of alternative remedy of an appeal being available against such orders. Mere delay in taking up of the writ petition does not impell to entertain the arguments. Further, the service receiver Corporation is working on the principle of No profit No loss basis, the same cannot enure to the benefit of the appellant, who is a Contractor, extending his service as Contractor. The service rendered by the appellant and the activity of construction by the appellant is not an activity of charity and is rather a contract for profit.
Held that:- The Hon’ble High Court rejected the appeal.
Merely because the Corporation is working on the principle of 'No profit No loss”” basis, the same cannot enure to the benefit of the appellant, who is a Contractor, extending his service as Contractor for the purpose of raising construction for the Corporation.
The service rendered by the appellant and the activity of construction by the appellant is not an activity of charity and is rather a contract for profit.
Section 25 of Finance Act — Service Tax- Construction Service – The appellant submitted that the learned Single Judge dismissed the writ petition after its pendency for a very long time when the issue raised was a legal one i.e. as to whether the appellant was liable for payment of any service tax which was the subject matter in dispute. The appellant has challenged the Orders dated 27.09.2010. The appellant submitted that keeping in view of Section 25 (b)(a) read with clause (d)(i) of Finance Act and further the clause 105 (zzq), the activity carried out by him did not relate to any commercial or industrial purpose. The court observed that the learned Single Judge has dismissed the writ petition on the ground of alternative remedy of an appeal being available against such orders. Mere delay in taking up of the writ petition does not impell to entertain the arguments. Further, the service receiver Corporation is working on the principle of No profit No loss basis, the same cannot enure to the benefit of the appellant, who is a Contractor, extending his service as Contractor. The service rendered by the appellant and the activity of construction by the appellant is not an activity of charity and is rather a contract for profit.
Held that:- The Hon’ble High Court rejected the appeal.