When Sub-contractor steps into the shoes of a Contractor

Govt while making a subordinate legislation had used the word `substitution' in place of the word `addition', which shows that the object and purport of the subsequent notification no 1/2018 was to grant the same benefit which had been granted to main contractors. Apex Court has made this point clear in Indian Tobacco Association case. Similar view was held by Hon SC in W.P.I.L. LTD case also. Ahmedabad Tribunal in Zabatex Textiles India Ltd case upheld the same view.
Legislative intent in giving exemption to subcontractors was visible in erstwhile Central Excise and Service Tax Notifications also.
Since it was the consistent policy of Government to grant exemption to supplies to Govt or for projects of national importance it could be easily construed that the subject notification merely clarifies the position and makes explicit what was implicit and hence will have retrospective application
PG JAMES

james pg 12/11/2018