No Service Tax on Army Housing Projects before 01.07.2010: CESTAT Grants Partial Relief to Sub-Contractor under Finance Act [Read Order]

CESTAT granted partial relief to a sub-contractor taxed for work on Army housing projects completed before 1 July 2010, the date from which such works contracts became taxable. The Tribunal held that applying service tax retrospectively was impermissible and examined evidence establishing the timing of work execution. It ruled that only post-cut-off services attract tax, and directed recomputation accordingly. The order clarifies the temporal scope of service-tax levy and protects contractors performing government projects from retrospective taxation.