CESTAT Quashes Service Tax Demand on Water Supply Agreement

Sasan Power Limited Vs Commissioner (CESTAT Delhi)

No Service Tax on Agreement with government for supply of water on the basis of volume of water drawn as same is not a case of assignment of right to use natural resources of the government.

e case of Sasan Power Limited vs. Commissioner (CESTAT Delhi) revolves around whether service tax is applicable to an agreement between Sasan Power Limited (the appellant) and the Water Resources Department of the Government of Madhya Pradesh for the supply of water. Here’s a breakdown of the key points and the decision:

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