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2022 (6) TMI 380 - AT - Service TaxWorks contract done through sub-contractorlaying of pipeline for fresh water - Applicability for exemption under N/N. - whether appellant-assessee, a company registered under Section 617 of the Companies Act 1956, a Government Company, 100% shares are held by the Rajasthan Government? - HELD THAT:- It is admitted fact that the appellant was set up by the Government of Rajasthan in February, 1979 and registered as a Government Company under Section 617 of the Companies Act, 1956. Initially the company was registered in the name of Rajasthan State Bridge and Construction Corporation Limited, to act as a nodal agency for construction of Bridges, Buildings and other Industrial Structure funded by Government of Rajasthan. It is further found that the “Government Authority‟ is mentioned in Sl. No. 25 of the exemption notification, and is further elaborated in definition clause (s) of the said notification, which provides that “Government Authority” means a Board, or an authority or any other body established with 90% or more participation by way of equity or controlled by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under Article 243W of the Constitution. Admittedly the appellant company is established by the Government of Rajasthan, which owns 100% of the equity and further 100% control is in the hands of the Government of Rajasthan - Further, the laying of fresh water pipeline is a work entrusted to a municipality under Article 243W of the Constitution of India. The appellant is entitled to exemption under Notification No. 25/2012-ST. - Appeal allowed - decided in favor of appellant.
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