2013 (10) TMI 1111 - AT - Service Tax

Duty Liability on Various Services rendered by Indian Railway - Revenue was of the view that the assessee is liable to pay service tax which arises on them for providing various services like Sale of space and time for advertisement, Renting of immovable property, Supply of Tangible Goods, Mandap Keeper services - Held that - special provisions have been made under Section 99 of Finance Act, 1994 and amendment brought in by Finance Act, 2013 which indicated that no Service Tax liability arises on Indian Railways - Since the legislature itself has passed an Act that no Service Tax liability arises on the Indian Railways for rendering the services during the period prior to October 2012 - Since all the demands of Service Tax in these cases are prior to October 2012 order set aside Decided in favour of Assessee.

Summary

Issues involved:
- Stay petitions filed by Indian Railways against the confirmation of demand of Service Tax liability, interest, and penalties.
- Interpretation of special provisions under Section 99 of the Finance Act, 1994, as amended by Finance Act, 2013.
- Determination of Service Tax liability on Indian Railways for providing various services.
- Application of Section 99 to cases of Service Tax demands prior to October 2012.

Analysis:
The Appellate Tribunal CESTAT Ahmedabad heard Stay Petitions filed by Indian Railways challenging the confirmation of Service Tax liability, interest, and penalties imposed by lower authorities. The Tribunal noted that the issue at hand was of narrow scope. Upon reviewing the arguments, the Tribunal decided to address the appeals directly after granting the Stay Petitions. The Service Tax liability in question pertained to services such as Sale of space and time for advertisement, Renting of immovable property, Supply of Tangible Goods, and Mandap Keeper services provided by Indian Railways. The appellant's representatives highlighted the special provisions under Section 99 of the Finance Act, 1994, as amended by Finance Act, 2013, which suggested that no Service Tax liability should be imposed on Indian Railways.

The Tribunal examined Section 99 of the Finance Act, 1994, as amended by the Finance Act, 2013, and confirmed that no Service Tax shall be levied on taxable services provided by Indian Railways before October 2012. As all the demands for Service Tax in these cases were prior to October 2012, the Tribunal concluded that no Service Tax liability arose on Indian Railways during that period. Consequently, the impugned orders were set aside, and all the appeals were allowed. The judgment highlighted the legislative intent behind Section 99 and its direct application to the cases involving Service Tax demands on Indian Railways before October 2012. The decision provided clarity on the non-applicability of Service Tax liability to Indian Railways for the specified period, based on the statutory provisions outlined in Section 99.