SUMAN CONSTRUCTION Vs. UNION OR INDIA

JUDGEMENT

(1.) The present writ petition preferred under Article 226 and 227 of the Constitution of India. The petitioner, a government-registered civil contractor, has approached this court seeking a declaration that the common order dtd. 20/3/2023, passed by the Additional Commissioner, CGST and Central Excise, Nagpur-1 for the financial years 2015-2016 and 2016-2017, is non-est and bad in law. The petitioner further seeks a declaration that in view of Notification No. 25/2012, dtd. 20/6/2012, issued by the Ministry of Finance under Sec. 93 of the Finance Act, 1994, (for short "the Act") the works of construction of roads executed for government departments are exempted from the levy of service tax. The petitioner also prays for quashing and setting aside the order dtd. 19/3/2025, passed by the Joint Commissioner, CGST and Central Excise, Aurangabad, rejecting his application for rectification of mistake under Sec. 74 of the Act.

(2.) The factual matrix is that the petitioner is engaged exclusively in executing civil construction contracts for various departments of the Government of Maharashtra, primarily for the construction of roads through the Public Works Department. The petitioner asserts that, in light of the Ministry of Finance Notification No. 25/2012-ST, dtd. 20/6/2012, services relating to construction of roads for the Government are wholly exempt from service tax. Consequently, the petitioner has not registered under the Act for service tax purposes.

(3.) According to the petitioner, on 21/1/2021, the Jurisdictional Range Superintendent of Central Excise issued a letter seeking details of the petitioner's turnover for financial year 2015-16 based on data obtained from MAHAVAT records. A show-cause notice thereafter was issued, demanding service tax on the assumption that the petitioner rendered taxable services. The petitioner replied on 12/5/2022, submitting income tax returns, Form 26 AS, balance sheets and certificate issued by the Public Works Department confirming that the works executed were related to government road construction. Despite this, the Deputy Commissioner confirmed the demand by order dtd. 24/3/2023 The petitioner preferred an appeal under Sec. 85 of the Act before the Commissioner (appeals), CGST and CEX, Nagpur-1, which was partly allowed by order dtd. 26/7/2024. The Appellate Authority confirmed a limited service tax demand of Rs.30,272.00 with corresponding penalties under Sec. 77 and 78 of the Act.