The Hon’ble Rajasthan High Court, Jodhpur Bench in M/s Nagaur Mukundgarh Highways Pvt. Ltd. v. Central Board of Indirect Taxes and Customs & Ors. [D.B. Civil Writ Petition No. 10055/2024 dated August 17, 2026] dismissed the writ petitions assailing Circular No. 150/06/2021-GST dated June 17, 2021, the Show Cause Notice and the consequential recovery order, and held that annuity payments received by a concessionaire under a concession agreement for design, construction, operation and maintenance of a road are consideration for “works contract services” falling under Heading 9954 and not “service by way of access to a road or a bridge on payment of annuity” under Heading 9967, and are, therefore, not exempt under Entry 23A of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. The Court further held that an earlier advance ruling in favour of the concessionaire does not fetter the Revenue once the Board has clarified the legal position, since taxability has to be determined with reference to the statutory exemption and the true nature of the services rendered under the contract.
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