Suman Construction Vs Union or India (Bombay High Court)
The Bombay High Court considered a writ petition under Articles 226 and 227 of the Constitution of India filed by a government-registered civil contractor challenging service tax orders for the financial years 2015-16 and 2016-17. The petitioner sought declarations that the order dated 20.03.2023 of the Additional Commissioner, CGST and Central Excise, Nagpur-1, was invalid, that construction of roads for government departments was exempt from service tax under Notification No. 25/2012, and that the order dated 19.03.2025 rejecting his rectification application under Section 74 of the Finance Act, 1994, be quashed.
The petitioner executed civil construction contracts exclusively for government departments, primarily road construction under the Public Works Department. He claimed exemption under Notification No. 25/2012 and had not registered for service tax. In 2021, the Jurisdictional Range Superintendent of Central Excise requested turnover details, leading to a show-cause notice alleging taxable services. The petitioner provided supporting documentation, including income tax returns and department certificates. Despite this, the Deputy Commissioner confirmed the service tax demand for 2015-16. On appeal under Section 85, a limited liability of Rs. 30,272/- with corresponding penalties was confirmed.
Despite finality in the 2015-16 adjudication, the Additional Commissioner issued a fresh order on 20.03.2023, imposing service tax for both 2015-16 and 2016-17. The petitioner filed a rectification application under Section 74 on 02.02.2025, contending that the Additional Commissioner’s order violated the doctrine of merger and was impermissible since the liability for 2015-16 had already been adjudicated.
