The petitioner, Simplex Infrastructure Ltd. (formerly known as Simplex Concrete Piles (India) Ltd.), was engaged primarily in executing civil engineering and construction contracts.

Initially, the Department initiated an enquiry in 1998 regarding the applicability of service tax under the category of Consulting Engineer Service. The petitioner replied that it was not providing consultancy services but was engaged only in civil construction work. Thereafter, the Department took no further action, leading the petitioner to believe that the matter had been closed.