Activity of Solid Waste Management & Sanitation Work Carried on at Instance of Local Authorities is Exempt From GST | HC

Case Details: Mahavir Sharmik and Nirman Swalambi Sahkari Samiti Ltd. v. State of Bihar - [2024] 158 taxmann.com 496 (Patna)

Judiciary and Counsel Details

• • K. Vinod Chandran, CJ. & Partha Sarthy, J.
  • D.V. Pathy & Hiren Karan, Advs. for the Petitioner.
  • Raghwanand & Pratik Kumar for the Respondent.

Facts of the Case

The petitioner company was engaged in sanitation work for collection of solid waste from houses. It received a notice under Section 74 quantifying the demand of tax and penalty for the Assessment Year 2019-20.

It filed appeal against the demand order but the appeal was dismissed by Appellate Authority. It filed writ petition to challenge the demand order and contended that the levy was not sustainable.

High Court Held

The Honorable High Court noted that the petitioner received a contract for collection and disposal of waste materials from each household, shop and commercial centres as also sanitation work of drainages/road in the specified seventeen wards of the Municipality.

The Court noted that the activity of the petitioner regulated by the work order and the consideration received for the same would be exempt under the GST Act. Therefore, the Court held that the assessment orders and demand notices were liable to be set aside.