NANDHINI CONSTRUCTIONS, REP BY A PARTNER CUM AUTHORISED SIGNATORY Vs. GOVERNMENT OF INDIA, REP BY ITS SECRETARY

JUDGEMENT

(1.) Appellant is a contractor carrying on civil works, since 1987. Appellant has entered into works contract with Government of Tamil Nadu through respondents 5 to 15 for carrying out several construction and other works. Between 2015 and 2016, appellant has entered into 19 contracts and carried out work from 01.04.2015 to 30.06.2017. Tender conditions in all the above contracts includes (a) the rates specified in the schedule for the different items of works are for the finished works (b) the contractor's rates are inclusive of sales tax payable by the contractor to Government as per the Tamil Nadu General Sales Tax Act, 1939, as amended from time to time. No enhanced rate would be paid to the contractor, for any upward revision of sales tax, during the currency of the contract.

(2.) Appellant has contended that he did not quote rates including service tax which was in vogue from 01.04.2015 to 30.06.2017. According to the appellant, works contract to Government, other than Commercial nature, was exempted by the Government of India, Ministry of Finance, New Delhi, 1st respondent in notification No.25 of 2012. But the exemption has been withdrawn with effect from 01.04.2015, and as per the subsequent notification dated 01.04.2015, all the contractors who execute public works under various departments of Government are liable to pay service tax. When service tax was liable to be paid by the subsequent notification from 01.04.2015, demand for Rs.1.39 crore was made.

(3.) The appellant was issued with notice dated 30.01.2017, directing payment of service tax due and the same is extracted hereunder: