LAING Vs. STATE OF JHARKHAND AND OTHERS

JUDGEMENT

(1.) In this writ petition the petitioners have prayed for quashing the impugned show cause-cum-demand notice dated 17th Sept., 2008 issued by the respondent No. 2, Commissioner of Central Excise and Service Tax, Government of India, whereby the petitioners were called upon to appear and show cause as to why the Service Tax amounting to Rs. 1,65,43,887.00 together with Education Cess and other taxes be not recovered for the works contract service rendered by the petitioners.

(2.) It appears that the petitioner M/s. Laing Simplex is engaged in rendering works contract service with the Executive Engineer, Special Works Division, Building Construction Department, Ranchi, Jharkhand. According to the petitioners, the construction of mega sports complex is the work undertaken by the petitioner No. 1, which is not to be used or intended to be used for commerce or industry and, therefore, the respondent-authority has no jurisdiction or authority to classify the said services under the Works Contract Service in terms of the Finance Act.

(3.) Be that as it may, the matter was heard on 30.1.2009 and the Advocate General was directed to seek instruction in the matter. Pursuant to that a counter-affidavit has been filed.