CG Tollway Ltd. v. Union of India

Notice issued against impugned order of High Court that where NHAI granted assessee exclusive toll rights and site access under concession for highway construction with nominal fee and post-Commercial Operation Date (post-COD) premium, with consideration including non-monetary elements like reciprocal toll right, such arrangement constituted a taxable works contract service under Schedule II, and valuation rules prescribed for 'consideration not wholly in money' would apply; thus, GST demand with interest and penalty was valid. GST : Notice issued against impugned order of High Court that where NHAI entered into a DBFOT concession agreement with assessee for construction of highway project and assessee engaged a sub-contractor for construction of highway project under a separate EPC contract while toll collection/asset transfer was governed under a a distinct contract with NHAI, supplies to sub-contractor and by assessee represented separate taxable events; so payment of GST by sub-contractorwould not preclude assessee’s supplies; plea of double taxation was not tenable. GST : Notice issued against impugned order of High Court that where NHAI entered into a DBFOT concession agreement with assessee and assessee, as a concessionaire constructed road with exclusive toll rights as consideration, in view of fact that no monetary payment was received from NHAI, toll collections represented reciprocal or deferred consideration for construction; thus, construction service was taxable under Heading 9954 and did not qualify for GST exemption meant only for access-to-road service by way of toll under Heading 9967, so exemption claim failed.…