9.
Q. "Yes, all the conditions laid down to define work contact service is with the I.e supply of material, supply of labour for compaction etc... But definition mention the crucial line for getting exemption is ' by way of' "not in relation to" so service provided by the me as earth work for road construction to the main contractor will be exempted ? "
Ans. If the above information is true (supply of service with material and there is transfer properly in goods, your activity is covered by Works Contract Service and you are entitled to exemption from ST vide serial no.29(h) of Notification No.25/12-ST dated as amended.
Although the following decision of AAR is applicable to the applicant specifically, yet you can take help from this decision to fight your case, if you receive any notice from the department. This decision is under GST but based on pre-GST era i.e. Service Tax
2018 (11) TMI 1265 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND IN RE : NHPC LIMITED
There is another school of thought on this very issue. That ground is i.e. Main contractor is providing service to Govt. (hence eligible for exemption) but sub-contractor is not providing to Govt. Sub-contractor is providing service to the main contractor. Hence sub-contractor is not eligible. I do not agree with this view.
In my view, exemption is available to your activity falls under Works Contract Service from all angles.