2013 (10) TMI 534 - AT - Service Tax

Service provided by the Indian Railways - Retrospective amendment - Held that - retrospective amendment very clearly states that any service provided by the Indian Railways during the period prior to 01.07.2012 is not taxable under Finance Act, 1994, nothing survives as the issue involved in this case being prior to 01.07.2012. It is also undisputed that appellant is Indian Railways - Decided in favor of assessee.

Summary

Issues:
Waiver of pre-deposit of confirmed amounts; Service Tax liability for 2005-2009; Retrospective amendment to Finance Act, 1994; Applicability of Section 99 to Indian Railways' services.

Waiver of Pre-Deposit:
The judgment addresses applications for the waiver of pre-deposit of amounts confirmed by the adjudicating authority and upheld by the first appellate authority. The appellant did not appear, but the learned Departmental Representative highlighted that the issue falls under the retrospective amendment to the Finance Act, 1994, specifically Section 99. The Tribunal considered this aspect and decided to take up the appeals for disposal after allowing the applications for waiver.

Service Tax Liability for 2005-2009:
The core issue in this case pertains to the Service Tax liability for the period 2005-06 to 2008-09, along with interest and penalties under various sections of the Finance Act, 1994. The Tribunal noted that the retrospective amendment to the Finance Act, through the insertion of Section 99, has a direct impact on the case. It was established that any service provided by the Indian Railways before July 1, 2012, is not taxable under the Finance Act, 1994. As the appellant is the Indian Railways and the issue predates July 1, 2012, the impugned orders were set aside based on this retrospective amendment.

Retrospective Amendment and Applicability of Section 99:
The Tribunal emphasized the significance of the retrospective amendment, which clearly states that services provided by the Indian Railways before July 1, 2012, are not taxable under the Finance Act, 1994. Given that the issue in this case falls within the specified period, the Tribunal found that the impugned orders are no longer valid in light of the retrospective amendment. Consequently, the appeals were allowed, and the impugned orders were set aside, aligning with the provisions of Section 99 and the retrospective nature of the amendment.

In conclusion, the judgment delves into the waiver of pre-deposit, the Service Tax liability for the specified period, and the impact of the retrospective amendment to the Finance Act, 1994, particularly Section 99 concerning services provided by the Indian Railways. The Tribunal's decision to set aside the impugned orders and allow the appeals was based on the retrospective nature of the amendment and its direct relevance to the case involving the appellant, the Indian Railways, and the pre-July 1, 2012, service tax liability period.