Design Work Of Slaughter House Established For Kolkata Municipal Corporation Covered Under Article 243W, No Service Tax Payable: CESTAT

The Allahabad Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the design work of slaughterhouses established for Kolkata municipal corporations is covered under Article 243W of the Constitution of India, and no service tax is payable.

The bench of P. K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) has observed that the slaughter house was established for Kolkata Municipal Corporation in terms of Article 243W read with Schedule 12th of the Constitution of India. Nothing, as observed by the Commissioner (Appeals), has been placed on record to show that the said slaughterhouse was for commerce and industry. On the contrary, in terms of Article 243W, this was the responsibility of the municipal corporation. That being so, the appellant is entitled to the benefit of Sr. No. 12(a) of Mega Exemption Notification No. 25/2012-ST dated June 20, 2012.

The respondent/assessee has undertaken the work of design and engineering, land and site development, civil works, etc. for the construction of a slaughterhouse for Kolkata Municipal Corporation.

The department was of the opinion that the activity should have been subjected to service tax. A show cause notice was issued to the respondent. The show cause notice has been adjudicated. The Commissioner (Appeals) allowed the appeal filed by the assessee.

The department challenged the order of the Commissioner (Appeals).

The tribunal, while dismissing the appeal of the department, noted that all the services provided to the government, a local authority, or a governmental authority have been exempt from the payment of service tax.

Counsel For Appellant: Santosh Kumar

Counsel For Respondent: Absent

Case Title: Commissioner of CGST & Central Excise, Lucknow Versus M/s Meatek Food & Machineries India Pvt. Ltd.

Case No.: Service Tax Appeal No.70577 of 2019

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