Summary
- The Patna High Court has ruled that service tax cannot be deducted from bills for exempt road construction services, allowing writ petitions from contractors including Rishi Builders India Pvt. Ltd.
- The Court directed the State of Bihar to refund service tax deducted post-Notification No. 12/2012-Service Tax, citing a general exemption for such services.
- The State's justification for deductions based on Estimated Cost Value was rejected as it lacked legal authority under Article 265 of the Constitution of India.
- This ruling reinforces the importance of adhering to exemption notifications and could impact future tax collection practices by state authorities in similar contracts.
Join the discussion ā sign up to comment, upvote, and save articles.