The appellant rendered services to M/s NTPC, a public sector ...

Services to NTPC Exempt from Tax; Supreme Court Defines 'Governmental Authority' and Limits Extended Tax Period.

January 8, 2025

Case Laws     Service Tax     AT

The appellant rendered services to M/s NTPC, a public sector undertaking under government control, engaged in electricity generation. Services provided to a 'governmental authority' are exempt from service tax. The SC held that a 'governmental authority' includes bodies set up by Parliament/State legislature or established by government with 90% or more participation. As M/s NTPC qualifies as a 'governmental authority', the services rendered were exempt. The extended period of limitation was also not invokable as the appellant had a bona fide belief that no service tax was payable on services for a mega project. The appeal was allowed.

View Source