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2013 (11) TMI 402 - AT - Service TaxService Tax liability on Management, maintenance and repair in respect of Road Held that - The Finance Act, 2012 vide Section 97 specifically exempted Service Tax liability with retrospective amendment - Any management, maintenance and repair undertaken during the period 16.06.2005 to 26.07.2009 are exempted from liability to pay Service Tax - the demand raised on the appellant on this issue set aside as the period involved is April, 2005 to February, 2009. Industrial Construction service Held that - Most of the construction done by the appellant is in respect of the buildings/hospitals/hostels and educational institutions for the Govt. of Gujarat - The retrospective amendment exempts Service Tax liability on the appellant, the demand of Service Tax liability on the appellant on this ground except, for Service Tax liability if any, that may arise in respect of construction undertaken by the appellant for Gram Hat Vasna, Ahmedabad and Vrajbhumi International School, Anand - there is no evidence to prove that these two constructions are also non-commercial constructions for Government of Gujarat thus the matter remitted back to reconsider the issue in respect only these two constructions. Business Auxiliary Service Tax on collection of toll Held that - Following Intertoll India Consultants (P.) Ltd. Versus Commissioner of Central Excise, Noida 2011 (5) TMI 257 - CESTAT, NEW DELHI - Notification No. 13/2004 specifically exempts the service tax liability on such services of collection of duties and taxes levied by Government - the Service Tax liability under the Business Auxiliary Service for toll collection is liable to be set aside Decided in favour of Assessee.
Issues:
Service Tax liability on maintenance, repairs, improvement, and strengthening of roads; Service Tax liability on commercial and industrial construction services; Service Tax liability on Business Auxiliary Service for toll collection on highways. Service Tax liability on maintenance, repairs, improvement, and strengthening of roads: The appellant, a contractor engaged in construction for the Government of Gujarat, was charged with non-discharge of Service Tax liability. The appellant resisted the show cause notice on merit and limitation, but the adjudicating authority confirmed the demand along with interest and penalties under Sections 76 & 78 of Finance Act, 1994. The appellant argued that the demand on construction of road service is covered by the retrospective amendment under Section 97 of the Finance Act, 2012, exempting such services from Service Tax. The Tribunal found that the Finance Act, 2012 specifically exempted Service Tax liability for the management, maintenance, or repair of roads during a certain period, and as the period involved in this case fell within that timeframe, the demand was set aside. Service Tax liability on commercial and industrial construction services: Regarding the demand on industrial construction services, the Tribunal observed that most of the constructions done by the appellant were for non-commercial purposes and for government agencies, covered by the retrospective amendment under Section 98 of the Finance Act, 2012. However, two constructions were questioned for not falling under non-commercial construction for the Government, requiring further evidence. The Tribunal remitted the matter back to reconsider the issue only for these two constructions. Service Tax liability on Business Auxiliary Service for toll collection: The Tribunal referred to previous decisions favoring the assessee in similar cases and set aside the Service Tax liability under the Business Auxiliary Service for toll collection. As a result of setting aside the Service Tax liabilities on various grounds, the Tribunal found no reason to impose penalties or interest on the appellant. The appeal was disposed of with directions to the adjudicating authority to reconsider the Service Tax issue only on the two specific constructions, ensuring the principles of natural justice are followed. This detailed analysis of the judgment highlights the key arguments, legal provisions, and decisions made by the Tribunal in addressing the Service Tax liabilities in the case.
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