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2022 (12) TMI 661 - CESTAT CHENNAIClaim of refund of service tax - work contract services - Section 102 of the Finance Act, 1994 which exempted services provided to Government for the period 01.04.2015 to 29.02.2016. - HELD THAT:- Undisputedly, the contract has been entered and signed on 19.03.2015. A contract comes into effect and binds the parties only when it is accepted. As per Section 2(b) of Indian Contract Act, 1872, acceptance is defined as “when the person to whom the proposal has been made signifies his assent thereto, the offer is accepted”. Thus acceptance refers to the act of one party agreeing to the terms of proposed by another party. Merely receiving a tender or opening a tender cannot be considered as acceptance. There should be communication or intimation of the acceptance. As per Section 102, the service provider is eligible for exemption of service tax only if contract is entered prior to 01.03.2015. The letter dt. 08.05.2015 reproduced above explaining the applicability of exemption from service tax issued by the Head office of the recipient (Contract Management) cannot override the provisions of law. Since the contract has been entered on 19.03.2015, the appellant is not eligible for exemption of service tax. Decided against the assessee.
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