Whether NBPDCL and SBPDCK do not fall under the definition of Govermental Authority for claiming exemption benifit?

[Sudhir Kumar]

The department has not given the benefit of exemption from service tax to the consideration received from NBPDCL and SBPDCK, Bihar citing that both the company do not fall under the definition of governmental authority under exemption notifications 25/2012 ST dated 20.06.2012, they further not given abatement.

Please guide.

 

AI Summary

Governmental authority status determines service tax exemption for services to state-owned power distributors; abatement may be claimed alternatively.
Qualification for service tax exemption depends on whether NBPDCL and SBPDCL meet the governmental authority criteria-state ownership/control and performance of an entrusted municipal function (electricity distribution). If so, construction type services for predominantly non commercial public use attract the exemption; otherwise, eligibility for statutory abatement remains a viable alternate claim, contingent on prescribed conditions such as non availment of input credit.