Services provided by local authorities in terms of sovereign right not subject to service tax: Madras High Court

Justice C Saravanan passed a ruling to this effect while setting aside service tax demands issued to the Virdhachalam Municipality and Cuddalore Municipality.
Madras High Court
Madras High Court

The Madras High Court recently clarified that services provided by Central government, State government or local authorities in terms of their sovereign functions, which are not substitutable by private entities, are outside the purview of service tax (Cuddalore Municipality v. The Joint Commissioner of GST & Central Excise).

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