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TMI Blog2024 (6) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the definition of governmental authority in mega exemption notification and are eligible for exemption from the service tax, which otherwise applies to construction services, as noticed by the Adjudicating Authority had been decided by the Patna High Court in SHAPOORJI PALOONJI COMPANY PVT. LTD. VERSUS COMMISSIONER, CUSTOMS CENTRAL EXCISE AND SERVICE TAX AND OTHERS [ 2016 (3) TMI 832 - PATNA HIGH COURT] . The said decision of the Patna High Court has been affirmed by the Apex Court in COMMISSIONER, CUSTOMS CENTRAL EXCISE AND SERVICE TAX, PATNA VERSUS M/S SHAPOORJI PALLONJI AND COMPANY PVT. LTD. ORS. AND UNION OF INDIA ORS. VERSUS M/S SHAPOORJI PALLONJI AND COMPANY PVT. LTD. [ 2023 (10) TMI 748 - SUPREME COURT] . Both the High Court and the Apex Court observed that the amended definition of governmental authority was introduced so that the exemption base for service tax was expanded even to an authority or a board or any other body set up by an Act of Parliament or a State legislature without the condition of having been established with 90% or more participation by way of equity or control by government carrying out any function and entrusted to a Municipality under Article 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x on Works Contract Services provided to MANIT. In response, the appellant claimed that MANIT is an Institute of National importance being established by an Act of Parliament i.e. the National Institute of Technology Act, 2007 and, therefore, falls within the definition of government authority , under the Notification No. 25/2012 dated 20.06.2012. The said services rendered are, therefore, exempted under Serial No.12 of the Notification. 3. Show cause notice dated 01.12.2017 was issued to the appellant demanding service tax of Rs.32,35,821/- in respect of Works Contract Service provided by them to MANIT for the period 2013 14 and 2014 15. The Adjudicating Authority, relying on the decision of the Patna High Court in Shapoorji Pallonji Pvt. Ltd. Vs. Commissioner 2016 (42) STR 681(Pat.) dropped the demand on the ground that the activity is exempted under S.No.12 of the Mega Exemption Notification. On appeal by the Revenue, the impugned order has been passed, confirming the demand as proposed in the show cause notice. The appellant is in appeal, before this Tribunal. 4. We have heard Shri Awadhesh Kumar Pandey, learned counsel for the appellant and also Shri S. K. Ray, the Authorised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, subsection (i) vide GSR 467(E), dated the 20th June, 2012, namely :- In the said notification, in the paragraph 2, for clause(s), the following shall be substituted, namely :- (s) governmental authority means an authority or a board or any other body; (i)set up by an Act of Parliament or a State Legislature; or (ii) established by Government, with 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; xx xx xx The perusal of both these Notifications shows that any authority, which is set up by an Act of Parliament or is established by a Government is a Governmental authority and any services provided to a Governmental authority by way of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-clause(ii). Further, it can be observed upon a plain and literal reading of clause 2(s) that while there is a semicolon after sub-clause (i), sub-clause (ii) closes with coma. This essentially supports the only possible construction that the use of a comma after sub-clause (ii) relates it with the long line provided after that and, by no stretch of imagination, the application of the long line can be extended to sub-clause (i), the scope of which ends with the semicolon. We are, therefore, of the opinion that the long line of clause 2(s) governs only sub-clause (ii) and not sub-clause (i) because of the simple reason that the introduction of semicolon after sub- clause (i), followed by the word or , has established it as an independent category, thereby making it distinct from sub-clause (ii). If the author wanted both these parts to be read together, there is no plausible reason as to why it did not use the word and and without the punctuation semicolon. While the Clarification Notification introduced an amended version of clause 2(s), the whole canvas was open for the author to define governmental authority whichever way it wished; however, governmental authority was redefined ..... X X X X Extracts X X X X X X X X Extracts X X X X
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