Page 100 - GSTL_18th June 2020_Vol 37_Part 3

314 GST LAW TIMES [ Vol. 37
12. Admittedly, these EWS Flats have been constructed by the appel-
lant for Improvement Trust, Amritsar. The said flats were distributed by the
Government among jhuggi jhopri residents at much below than the cost of con-
struction. The said flats were not constructed for any commercial gain, therefore,
we hold that the appellant is entitled for the benefit of Notification No. 25/2012-
S.T., dated 20-6-2012 at Sr. No. 12(a) and (c). Therefore, on the amount for con-
struction of EWS Flats, the appellant is not entitled to pay Service Tax. In view of
this, for the period prior to 31-3-2015, the appellant have not to pay Service Tax
on the construction of EWS Flats.
13. We further take a note of the fact that the said exemption has been
taken over by the Notification No. 6/2015-S.T., dated 1-3-2015 with effect from
1-4-2015.
14. We further take a note of the fact that in the case of Bharat Bhushan
Gupta & Company (supra) observed as under :-
“The Board has been constituted in terms of the provisions of Section 3 of
the Act, as was enacted by the State Legislature. It is a body corporate
which consists of a Chairman, a Chief Administrator and such other mem-
bers, as the State Government may, from time to time, appoint by a notifica-
tion. The Chief Administrator shall be a person from amongst the officers of
the rank of Head of the Department or Joint Secretary of the State Govern-
ment. It is termed to be a local authority for the purposes of Land Acquisi-
tion Act, 1894. Section 20 of the Act provides that subject to control of the
State Government the Board may incur expenditure on framing and execu-
tion of such housing schemes as may be considered necessary from time to
time or as may be entrusted to it by the State Government. Every year, the
Board is to prepare a budget in advance for the next year and place it before
the State Government for its approval. After sanction is granted by the State
Government, the same is published in the Official Gazette. The Board is au-
thorised to borrow money for implementation of the projects, as approved
with prior approval of the State Government. Section 72 of the Act provides
that the State Government shall exercise superintendence and control over
the Board and its officers. The aforesaid provisions of the Act clearly show
that the Board is a Governmental Authority, as it is fully under the control
of the State Government”
It was further observed by the Hon’ble High Court as under :-
“21. In view of our aforesaid discussion, it can safely be opined that for
the kind of contract entered into between the petitioners and the Board, no
Service Tax is leviable, hence, the action of the Board in deducting part of
the Service Tax, though payable in the hands of the Board, if tax is leviable,
from the bills of the petitioners is declared to be illegal.
Issue No. (ii) :
22. Another issue was raised regarding liability for payment of Service
Tax, if payable. Though in view of our aforesaid findings, the issue has lost
significance, however, as the argument was raised, we will touch upon the
same. Condition No. 3 in the additional conditions, as provided for in the
contract entered into between the parties, reads as under :
“3. Royalty, Sales Tax, Excise Duty, Octroi, Service Tax or any other
tax or levy, shall be paid by the contractor direct to the respective depart-
ment in accordance with their rules and regulations enforce from time to
time, without any liability to the Housing Board Haryana.”
[Emphasis supplied]
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