https://www.taxtmi.com/caselaws?id=800530 Fund allocations transmitted through NEC for governmental activities, without a service provider-recipient relationship, do not constitute consideration for taxable services. Statutory and sovereign functions performed by public authorities, where prescribed collections are remitted to Government and no amount is retained, fall outside service-tax liability; this principle applied to work performed for NTPC where the invoiced service tax was not paid. Extended limitation requires suppression of facts: a bona fide belief concerning sovereign functions, governmental grants forming the principal demand, and non-collection of tax do not establish suppression. Service-tax demands consequently failed on merits and, for the extended period, on limitation. en-us Tue, 06 Oct 2026 00:00:00 +0530 Thu, 08 Oct 2026 08:45:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800530 Fund allocations transmitted through NEC for governmental activities, without a service provider-recipient relationship, do not constitute consideration for taxable services. Statutory and sovereign functions performed by public authorities, where prescribed collections are remitted to Government and no amount is retained, fall outside service-tax liability; this principle applied to work performed for NTPC where the invoiced service tax was not paid. Extended limitation requires suppression of facts: a bona fide belief concerning sovereign functions, governmental grants forming the principal demand, and non-collection of tax do not establish suppression. Service-tax demands consequently failed on merits and, for the extended period, on limitation. Case-Laws Service Tax Tue, 06 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800530