Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Transfer of Toll Collection Rights Is Taxable Service | NHAI Not Exempt Under Negative List : CESTAT Hyderabad
CESTAT Hyderabad rules that NHAI’s assignment of toll collection rights to private contractors for fixed consideration constitutes a taxable service under the service tax regime, rejecting claims of sovereign immunity and negative list exemption. This sets a critical precedent for statutory authorities engaging in commercial activities, clarifying that public infrastructure operators cannot evade tax liability by masking revenue-generating contracts as sovereign functions.