2025 (4) TMI 108

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....lding, civil structure or a part thereof" and "works contract service" to Rajasthan Housing Board during the period 2013-14, which services are declared services under section 66E(b) and 66E(h) of the Finance Act, 1994 [the Finance Act] but service tax was not paid. A show cause notice dated 26.03.2015 was, therefore, issued to the appellant alleging that though the appellant provided the aforesaid two services to Rajasthan Housing Board, but it did not pay service tax. The appellant filed a reply to the show cause notice contending that the service provided to Rajasthan Housing Board would not be taxable as they are covered under Serial No. 12 of the Mega Exemption Notification No. 25/2012-ST dated 20.06.2012 [the Exemption Notification]. ....

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....efinition of a 'governmental authority' and article 243W of the Constitution, the Commissioner observed: "From the above it is clear that Rajasthan Housing Board is not Governmental Authority as it is not entrusted the function as mentioned in Article 243W of the Constitution of India. Since, the Rajasthan Housing Board is not Government, Local authority or Governmental Authority, therefore the said exemption Notification No. 25/2012-ST is not available to them. Legally, bodies which are established or constituted "under a statute" are different from bodies which are "formed and registered" under a statute. Companies and Societies registered under the respective Acts are merely bodies "formed and registered" under these Acts and cannot be....

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....d the learned authorized representative appearing for the department have been considered. 9. To appreciate the contention that have been advanced it would be appropriate to examine the Exemption Notification dated 20.06.2012. It exempts the taxable services mentioned therein from the whole of the service tax leviable thereon under section 66B of the Finance Act. At Serial No. 12 services provided to the government, a local authority or a government authority by way of construction or erection commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of structures are mentioned. 10. The appellant has placed emphasis on the fact that Rajasthan Housing Board is a 'governmental authority'. 'Governme....

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....d that the conjunction 'or' between sub-clauses (i) and (ii) divides the clauses into two parts and, therefore, both the parts would be independent of each other. Thus, a 'governmental authority' would mean either an authority or a board or any other body set up by an Act of the Parliament or a State Legislature or an authority or a board or any other body established by 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. 14. It would, therefore, have to be examined whether either of the two conditions is satisfied by Rajasthan Housing Board. 15. Rajasthan Housing Board has not been set up by an Act of a Stat....