Service recipient not liable to service tax on construction activities carried through contractors

Chhatisgarh Housing Board Vs. C.C.E. & S.T. (CESTAT Delhi) If the construction activity is in effect carried out by the contractors in terms of an agreement with the appellants, it will be the contractors who will be considered as service providers. The appellant will be service recipient. The appellants monitor the construction and managed the allotment and sale of these constructed houses. In our opinion, this by itself does not make the appellant as a provider of construction service. This aspect has not been examined by the lawyer authorities. We find substantial force in the plea of t...