𝗖𝗘𝗦𝗧𝗔𝗧 𝗛𝘆𝗱𝗲𝗿𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗪𝗼𝗿𝗸𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗳𝗼𝗿 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Works contracts for Government projects such as water pipelines and canals, executed as turnkey/EPC projects, are not subject to service tax under Section 65(105)(zzzza)."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Progressive Constructions Ltd. 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is liable to pay service tax for works contracts undertaken for Government projects. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant provided works contract services for Government projects like canals, water pipelines, road works, and earthwork. A show-cause notice demanded service tax for the period 2007–2011.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that works contracts for the Government of Andhra Pradesh are not taxable under Section 65(105) (zzzza), as they are non-commercial. Relying on precedents like Lanco Infratech Ltd., the demand, interest, and penalties for 12 projects were set aside. The appeal was allowed, and demands were remanded.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Progressive Constructions Ltd. vs. Commissioner of Service Tax, Hyderabad – Service Tax 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 21200 of 2014 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 25 April 2023 📜 This ruling affirms that works contracts for Government projects, particularly involving essential utilities, are exempt from service tax.