No Service Tax Payable On Construction Services Provided To Educational Institutions Prior To 30.06.2012: CESTAT

In a recent ruling, the CESTAT determined that educational institutions are not liable for service tax on construction services they procure. The Tribunal concluded that these institutions fall under the exempted category for such services, as per the relevant service tax notifications. This decision reinforces the stance that service tax cannot be levied on educational institutions for construction activities when they are providing education or related services. The ruling aligns with previous judgments where the focus has been on the nature of the services provided rather than the entity receiving them.