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TMI Blog2025 (3) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... ces Tax and Central Excise, Jaipur. 2. The issue, in brief, is that the appellant provided "Works Contract Service" as sub-contractor of M/s NBCC who inturn provided Works Contract Service to National Institute of Technology (NIT), Patna and Indian Institute of Technology (IIT), Mandi. From the case records it is seen that M/s. NIT, Patna and M/s. NBCC entered into an MOU dated 23.07.2013, for execution of work related to (a) relaying of drainage & Sewage System of NIT, Patna (old campus), (b) Construction of Sewage Treatment Plant (STP) with no discharge at NIT, Patna& (c) Expansion of Department of Electronics & Communication Engineering at NIT Patna Campus. Likewise, MOU dated 21.03.2014 gives details of work order between IIT, Mandi an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No 25/2012-ST dated 20.06.2012, and so the present appeal. 5. The appellant has pleaded that the issue has already been settled vide judgement of Hon'ble Patna High Court in Shapoorji Pallonji & Company Private Limited vs. C.C., Central Excise & S.T, Patna [2016 (3) TMI 832-Patna High Court] which has also been upheld by the Hon‟ble Apex Court [2023 (10) TMI T48-SC]. In this referred judgment, Hon‟ble High Court has held that the definition of 'governmental authority' comprises of two Sub-clauses (i) and (ii) of Clause 2(s), which are independent and dis-conjunctive provisionsand the expression "90% or more participation by way of equity or control to carry out any function entrusted to Municipality unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bills and submitted a letter reference No. NBCC/HO/ST/828 dated 03.03.2016 from M/s. NBCC to this effect. 7. The Learned AR reiterates the findings of the lower authorities. 8. We have heard both the sides and perused the record. We find that following two issues are involved in the present case: - a) Whether NIT Patna and IIT Mandi fall within the definition of "Governmental Authority" as defined under Section 2(s) of the Notification No. 25/2012 dated 28th June, 2012 as amended by the subsequent Notification dated 30.01.2014 and thereby, entitled to exemption under Srl. No. 12 of above Notification. b) Whether exemption from Service tax is available to the appellant in the facts of the case in respect of their contracts? 9. Regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution is relatable to only sub-clause (ii) of Clause 2(s). It means that an authority established by Government should have 90% or more participation by way of equity or control to carry out any function entrusted to a municipality under Article 243W of the Constitution to be eligible for exemption. The Authority set up by an Act of Parliament or State Legislature is not and cannot be made subject to the condition of 90% or more participation by way of equity or control to carry out any function entrusted to a municipality under Article 243W of the Constitution. Thus, the construction activity undertaken by the petitioner in respect of the academic block of the Institute-Respondent No. 4, is exempt from payment of service tax in terms of No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /607 dated 08.04.2016 (in case of NIT Patna)& Letter reference No. NBCC/GM/IIT/MANDI/2015/3000 dated 02.05.2015, (in case of IIT Mandi). We find that both these contracts have been entered into between the appellant and their principal after 01.03.2015. The entry at Sr. No. 12A(a) was inserted w.e.f. 01.03.2016 which reads as : - "12A. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predomina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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