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of <h1>Construction services for state housing board: eligibility for Notification 25/2012-ST (12A) exemption denied; appeal dismissed.</h1> The dominant issue was whether construction services provided to a state housing board qualified for exemption under Notification No. 25/2012-ST (Sr. No. ... Eligibility for Exemption Notification No. 25/2012-ST dated 20.06.2012 (Sr. No. 12A) - services provided to Rajasthan Housing Board are exempted being services provided to government authority or not - HELD THAT:- The order of the Commissioner dropping the demand pertained to the pre-negative list period. During that period only taxable services could be charged to service tax. Construction of residential complex was one of the taxable services. The definition of residential complex at that time has been held to not include individual houses but only buildings with 12 or more residential units. It is for this reason, the Commissioner has dropped the demand. The claim of the appellant is that the services were exempted as they were rendered to Rajasthan Housing Board which is a governmental authority. In A.S. Construction Company Limited [2025 (4) TMI 108 - CESTAT NEW DELHI], this Tribunal held that 'The appellant did not lead any evidence to substantiate that the Rajasthan Housing Board was established by the State Government with 90% or more participation by way of equity or control by the Government, to carry out any function entrusted to a municipality under article 243W of the Constitution.' There are no reason to take a different view in this case. Respectfully following AS Construction, the impugned order needs to be upheld - appeal dismissed. Issues: (i) Whether services provided by the appellant to Rajasthan Housing Board during the post-negative list period were eligible for exemption under Exemption Notification No. 25/2012-ST (Serial No.12 / 12A) on the ground that Rajasthan Housing Board is a 'governmental authority' as defined in the notification.Analysis: The exemption regime requires that exemption under Serial No.12/12A applies only where the service recipient qualifies as a 'governmental authority' as defined in the Exemption Notification and its amended definition. The relevant legal framework includes the Exemption Notification No.25/2012-ST and the amended definition in Notification No.2/2014. Under the amended clause, a 'governmental authority' means either (i) an authority/board/other body set up by an Act of Parliament or a State Legislature, or (ii) an authority/board/other body established by government with 90% or more participation by equity or control to carry out functions entrusted to a municipality under Article 243W. The statutory text and the tribunal's prior consideration in A.S. Construction Company Limited establish that these two alternatives are distinct and independent; therefore entitlement must be shown by satisfying one of them. Applied to the facts, Rajasthan Housing Board was not set up by a State Legislature Act but was established by government notification; the appellant did not demonstrate 90% or more government participation by way of equity or control nor that the Board carries out a function entrusted under Article 243W. The pre-negative list decision to drop an earlier demand rested on a different legal basis (definition of 'residential complex') and does not establish entitlement to the post-negative list exemption under the notification.Conclusion: Rajasthan Housing Board does not satisfy the definition of 'governmental authority' in the Exemption Notification for the period in question; accordingly the services are not entitled to exemption under Serial No.12/12A of Exemption Notification No.25/2012-ST.
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