2013 (3) TMI 734 - AT - Service Tax

Summary

Issues involved:
The issues involved in this case are related to Service Tax liability on construction and repair services, liability under GTA services, and demands under 'Management, Maintenance or Repair Service' and 'Construction Service' for specific periods.

Service Tax liability on construction and repair services:
The appellant, a partnership firm engaged in construction and allied activities, did not discharge Service Tax amounting to Rs. 59,89,498 under the category of 'Management, Maintenance or Repair Service'. The firm also had Service Tax liabilities for other services provided. The appellant argued that since the definition of construction service excluded construction related to railways, they were not liable to pay Service Tax on the said activity. However, the Tribunal clarified that maintenance or repair work of properties, including railways, falls under 'Management, Maintenance or Repair Service' and is taxable. The appellant was directed to make a pre-deposit of Rs. 15 lakhs, with the balance of dues waived upon compliance.

Liability under GTA services:
The appellant contended that they were not liable to pay Service Tax under GTA services as the transporter did not raise any consignment notes on them, and the freight expenses were below the threshold for benefit under Notification No. 34/2004-S.T. The Tribunal found merit in the appellant's argument regarding demands under GTA services and construction services, indicating that they may be covered under exemption Notifications or pertain to services rendered prior to the imposition of tax.

Demands under 'Construction Service' for specific periods:
Regarding demands under 'Construction Service' for specific periods, the appellant argued that the services pertained to construction of railway track and alignment work on railway lines undertaken before the levy on construction services. The Tribunal considered the appellant's submissions and directed them to make a pre-deposit of Rs. 15 lakhs, with the balance of dues waived upon compliance.