- HC grants service tax exemption to contractor undertaking construction of academic complex at IIT Patna, in terms of Notification No. 25/2012-ST r/w Notification No. 2/2014-ST;
- Notes that IIT has been set up by an Act of Parliament, viz. Institutes of Technology Act, as an institute of national importance under Article 248 of Constitution r/w List I of Seventh Schedule, hence qualifies as “Governmental Authority” as defined under clause 2(s) of amended Notification No. 25/2012-ST;
- Rejects Revenue’s stand that condition of 90% or more participation by way of equity / control to carry out any function entrusted to municipality under Article 243W of Constitution is a sine qua non to qualify as “Governmental Authority” for claiming exemption;
- Holds that sub-clauses (i) & (ii) of clause 2(s) of Notification are independent dis-conjunctive provisions, condition of participation is applicable only to authority established by Govt., not that set up by Act of Parliament or State Legislature; Hence, assessee / IIT entitled to refund of service tax amount already deposited, holds HC while rejecting Revenue’s unjust enrichment plea : Patna HC