Bihar Rajya Pul Nirman Nigam Limited Vs Union of India (Patna High Court)
Patna High Court held that service tax is leviable on centage charges received for their service charge/ technical assistance and exemption benefit under Mega Exemption Notification is not available since actual construction of roads and bridges are done by contractors.
Facts- The present petition has been filed by the petitioner mainly contesting against levy of service tax on the amount of ‘centage’ received by them from the government to get constructed the bridges by further awarding contracts to various contractors. Accordingly, to petitioner they are eligible for exemption under Mega Exemption Notification No. 25/2012-ST dated 20.06.2012.
Conclusion- Held that unless the petitioner is able to demonstrate by cogent evidence that it is engaged in providing services by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of a road or bridge for use by the general public, it would not be possible to hold that its activity would be exempted under clause 13(a) of the Mega Exemption Notification. We cannot lose sight of the findings recorded by the respondent no.3 that in the profit and loss account, the petitioner has shown revenue from operation from centage, from toll collection; centage from construction of roads and bridges.
