Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Service Tax Exemption | Repair of Naval Vessels & Dockyards as Non-Commercial Government Function Exempt: CESTAT Hyderabad
CESTAT Hyderabad rules that repair and maintenance services for Indian Navy ships and dockyards are exempt from service tax because they serve sovereign, non-commercial governmental functions, not commercial activities. This clarifies the scope of exemption for defence-related infrastructure contractors and reinforces the principle that state functions, even when outsourced, do not trigger indirect tax liability unless commercial in nature.