2016 (2) TMI 939 - AT - Service Tax

Application for out-of-turn hearing - issue is covered by the decision of this Bench in the case of Ideal Road Builders P. Ltd. 2015 (8) TMI 592 - CESTAT MUMBAI - Held that - the issue is regarding the service tax liability on the appellant in relation to collection of toll as has been extended to them by National Highway Authority of India. The Bench has taken a call of the judgement of Ideal Road Builders P. Ltd. and held that the said activity does not amount to any service rendered and no service tax arises. We do not find any reason to deviate to such a view taken by this Bench (wherein one of us Shri M.V. Ravindran was a Member) - appeal allowed.

Summary

Issues:
Service tax liability on the appellant in relation to collection of toll extended by National Highway Authority of India.

Analysis:
The application for out-of-turn hearing was filed based on a previous decision by the Bench in the case of Ideal Road Builders P. Ltd. The Bench found that the issue was indeed covered by the decision mentioned. Consequently, the application for out-of-turn hearing was allowed, and the appeal itself was taken up for disposal.

During the hearing, it was noted that a previous stay order had directed the appeal to be connected with another appeal, which had now been disposed of. The issue at hand concerned the service tax liability on the appellant regarding the collection of toll extended by the National Highway Authority of India. The Bench referred to the judgment in the case of Ideal Road Builders P. Ltd. and concluded that the activity of toll collection did not amount to a service rendered, and therefore, no service tax liability arose. The Bench, in line with the previous decision, set aside the impugned order and allowed the appeal.

In summary, the judgment revolved around the service tax liability of the appellant in relation to toll collection, with the Bench relying on a previous decision to determine that no service tax was applicable in this case.