Case Details: Commissioner of Service Tax, Delhi East v. Navnirman Construction Company (2025) 26 CENTAX 415 (Tri.-Del.)
Judiciary and Counsel Details
- Dr Rachna Gupta, Member (J) & Ms Hemambika R. Priya, Member (T)
- Shri Anand Narayan, Authorized Representative, for the Appellant.
- Shri Kamal Gupta, Chartered Accountant, for the Respondent.
Facts of the Case
The assessee was engaged in providing construction services to private companies. During the audit of the main contractor, it was revealed that the assessee received various services through contractors/sub-contractors service providers. Later, the main contractor did not charge service tax on the bills against those services provided. The assessee charged the main contractor without charging any service tax. The department contended that the assessee was not liable to pay service tax on the construction services provided to the main contractor as the main contractor was exempt from paying service tax on the same services. The matter reached the CESTAT.
CESTAT Held
The Tribunal held that the services provided by the assessee were not provided to the Government but to a private company. The construction was meant for profit/revenue generation and not predominantly for non-commercial use. The exemption available to the Government services would not be available to the sub-contractor providing services to a private contractor, even if the main contractor is exempt and the final service recipient is the Government.
List of Cases Cited
- Commissioner v. Melange Developers Private Limited — 2020 (33) G.S.T.L. 116 (Tribunal) — Relied on[Para 17]
- Commissioner v. Reliance Ports and Terminals Ltd. — 2016 (334) E.L.T. 630 (Guj.) — Relied on [Paras 9, 12]
- Kedar Constructions v. Commissioner — 2015 (37) S.T.R. 631 (Tribunal) — Relied on [Para 10]
- Madhya Pradesh Power Transmission Co. Ltd. v. Principal Commissioner — 2023 (385) E.L.T. 152 (Tri. – Del.) = (2023) 6 Centax 49 (Tri. – Del.) — Relied on [Para 10]
- Max Tech Oil Gas Service Pvt. Ltd. v. Commissioner — 2017 (52) S.T.R. 508 (Tribunal) — Relied on [Para 17]
List of Departmental Clarification Cited
- C.B.E. & C. Circular No. 80/10/2004-S.T., dated 17-9-2004 [Paras 10, 13]
List of Notifications Cited
- Notification No. 11/2010-S.T., dated 27-2-2010 [Paras 10, 13]
