Service provider liable to pay 50% tax on works contract service provided to body corporate

B.L. Goel And Co. Vs Additional Director General Of GST Intelligence (Delhi High Court)

Delhi High Court held that New Okhla Industrial Development Authority (NOIDA) being a body corporate, the petitioner (service provider) was liable to pay service tax on works contract to the extent of 50%. Accordingly, the demand was set aside as 50% service tax was duly discharged.

Facts- The petitioner has filed the present petition impugning a show cause notice calling upon the petitioner to show cause as to why the service tax amounting to ₹2,67,26,113/- should not be demanded and recovered from the petitioner by invoking the extended period of limitation u/s. 73 of the Finance Act, 1994.

The petitioner is engaged in the business of construction of residential complexes, schools, government buildings, parking facilities etc. on works contract basis. Undisputedly, the said activities fall within the definition of ‘works contract’ u/s. 65B (54) of the Finance Act.

The controversy in the present petition relates to the petitioner’s liability for payment of the service tax on works contracts executed during the period of 2014-15 to 2017-18.

Please become a Premium member. If you are already a Premium member, login here to access the full content.