2013 (1) TMI 887 - HC - Service Tax

Summary

Issues involved: Challenge to Circular and Notification u/s Finance Act, 1994 regarding Service Tax on widening, carpeting, and repairs of roads.

Judgment Summary:

Challenge to Circular and Notification: The petitioner, engaged in construction activities, challenged the Circular dated 23-2-2009 and Notification No. 24/2009 dated 27-7-2009 issued by the respondent as contrary to the provisions of the Finance Act, 1994, regarding the levying of Service Tax on widening, carpeting, and repairs of roads. The petitioner's counsel and the Senior Standing Counsel for the respondents were heard. The Court noted that as per Section 97 of the Finance Act, 2012, no Service Tax shall be levied or collected in respect of management or repair of roads during the period from 16th June 2005 to 26th July 2009. It was further directed that any Service Tax collected during this period, which would not have been collected if the Act was in force, shall be refunded. Therefore, the petitioner was found not liable to pay any Service Tax on the management, maintenance, or repair of roads between the specified dates, and any collected tax would be refunded. The writ petition was disposed of accordingly, with the respondents instructed to amend, withdraw, or modify the show cause notice.