No Service Tax Leviable on Construction Service Provided to Semi-Govt Firm: CESTAT

CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has ruled that "no service tax is leviable on construction services provided to a semi-government firm." The tribunal held that construction services rendered for projects by semi-government entities engaged in providing civil amenities or essential services (like electricity distribution) for citizens, and not primarily for commercial purposes, would be exempt from service tax. This decision provides clarity on the taxability of such services, recognizing the public welfare nature of these projects and their exemption from commercial service tax levies.