Ravray Construction: Gujarat HC Quashes Service Tax Demand for No Pre-Consultation

By CA Sandeep Kanoi Service Tax Judiciary August 25, 2026

TaxGuru Citation: 2026 taxguru.in 11641
Case Name: Ravray Construction & Anr. Vs Add. Commissioner (Gujarat High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Gujarat High Court

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Ravray Construction & Anr. Vs Add. Commissioner (Gujarat High Court)

The Gujarat High Court quashed and set aside the show cause notice dated 23.10.2021, order-in-original dated 7.2.2022 and appellate orders passed against Ravray Construction & Anr. The petitioners, engaged in construction, renovation or alteration of public roads, had provided services valued at Rs.4,46,66,920/- during FY 2016-17 to M/s JRA Infrastructure Limited and M/s PM Construction. The respondent authorities had sought to recover Service Tax of Rs.67,00,038/- with interest and penalty by invoking the extended period under section 73(1) of the Finance Act, 1994. The petitioners contended that the services were exempt under Notification No.25/2012-ST dated 20.6.2012 and that mandatory pre-consultation had not been undertaken before issuance of the SCN. Relying upon its earlier decision in M/s Jay Mahakali Industrial Service and the legal position considered in L AND T Hydrocarbon Engineering Ltd., the High Court held that the issue was no longer res integra. It concluded that the impugned proceedings could not be sustained in the absence of the required pre-consultation. The authorities were, however, permitted to take appropriate proceedings if permissible within limitation after giving pre-consultation notice.

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