Construction Services provided to IIT exempt even though Government does not hold 90% or more equity/control in it

Last updated: 26 March 2016

Court :
High Court of Patna

Brief :
The Hon’ble High Court of Patna held as under: The ‘Governmental authority’ as defined in the Notification dated January 30, 2014, means an authority or a board or any other body set up by an Act of Parliament or State Legislature; The provisions contained in sub-clause (i) and sub-clause (ii) of Clause 2(s) of the Mega Exemption Notification are independent dis-conjunctive provisions and the expression “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” is related to sub-clause (ii) of Clause 2(s) alone, as the sub-clause (i) is followed by ';' and the word 'or'. Therefore, each of the sub-clauses is independent provision;

Citation :
Shapoorji Paloonji & Company (P) Ltd. Vs. Commissioner, Customs & Central Excise & Service Tax [(2016) 67 taxmann.com 218 (Patna)]