Sub-Contractor Exempt from Service Tax if Main Contractor is Exempt: CESTAT

AECS Engineering and Geotechnical Services Pvt. Ltd. Vs Principal Commissioner of Central Goods & Services Tax (CESTAT Allahabad) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad, has set aside a significant service tax demand against AECS Engineering and Geotechnical Services Pvt. Ltd., ruling that a sub-contractor providing services for an exempt works contract is also exempt from service tax. The decision, pronounced on May 21, 2025, underscores the principle that service tax liability cannot be solely based on Income Tax Form 26AS data and highlights crucial a...