No Service Tax on construction activities for Mega Sports Complex to be used for non-commercial purposes

Last updated: 25 October 2023
Quick Summary
The Kolkata High Court has ruled that service tax is not applicable to the construction of a Mega Sports Complex intended for non-commercial purposes. The court found that amenities like restaurants and guest houses within the complex were necessary for its functionality and did not render the project commercial. Consequently, the demand for service tax and penalties against the construction company was nullified.

Court :
Kolkata High Court

Brief :
The Hon'ble Kolkata High Court in M/s. Laing- Simplex JV v. Commissioner of Central Excise and Service Tax, Ranchi [Service Tax Appeal No. 70693 of 2013 dated October 10, 2023] held that the services provided during the construction of the large sports facility were not subject to service tax. This determination was based on the understanding that the primary purpose of the mega sports complex was not of a commercial nature.

Citation :
Service Tax Appeal No. 70693 of 2013 dated October 10, 2023

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