SHAPOORJI PALOONJI & COMPANY PVT. LTD. Vs. COMMISSIONER, CUSTOMS CENTRAL EXCISE AND SERVICE TAX AND ORS.

JUDGEMENT

(1.) The petitioner is a Limited Company engaged in the business of execution of works contract. The Indian Institute of Technology - Respondent No. 4 (for short herein after referred as "Institute"), is a body incorporated by the Institutes of Technology Act, 1961. The Institute appointed National Building Construction Corporation Limited (in short, NBCC) (respondent No. 3) as a consultant for construction of its academic building project at Bihta, Patna. The petitioner was appointed as contractor for construction of academic complex of Indian Institute of Technology, Bihta, by NBCC vide letter of award, dated 20th December, 2012. The relevant extract for the purpose of this writ petition, from the letter of award reads as under: - -

(2.) In terms of the letter of award, the petitioner registered itself with respondent No. 1 and started payment of service tax. A notice to pay service tax was also issued to the Petitioner by the Superintendent of Service Tax, Range -XVIII, Division -2, Service Tax Commissionerate, Kolkata, on 13.11.2013. Such levy of service tax was again reiterated vide communication, dated 05.09.2014.

(3.) Respondent No. 2, Indian Audit and Account Department, raised audit objection on 30th June, 2015 to the effect that service provider undertaking construction activity of educational institutions are not required to pay service tax. In terms of the audit objection, the petitioner claimed that service tax is not payable by the petitioner or by the Indian Institute of Technology, respondent No. 4, on the construction activity, undertaken by the petitioner.