No Service Tax Exemption for Roofs Over Mandi Roads: CESTAT Rules Structure Not Meant for General...

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that the construction of roofs over the roads within a mandi (agricultural market) is not eligible for a service tax exemption. The tribunal's decision was based on the finding that these structures were not meant for "general public use." The exemption for road construction is typically available for roads that are accessible to the public at large. In this case, the CESTAT observed that the roads within the mandi complex were part of a commercial establishment and were primarily used by traders and others involved in the market's activities, not the general public. Therefore, the tribunal concluded that the construction of roofs over these internal roads did not qualify for the service tax exemption, clarifying that the 'public use' clause must be interpreted strictly.