2014 (1) TMI 1451 - AT - Service Tax

Waiver of pre deposit - Commercial or industrial construction activities - Maintenance and repair of roads - Development of the parks along with boundary walls - Held that - activity of repair of roads stands proposed to be exempted retrospectively in the Finance Bill of 2012. As regards the construction of parks, same would not be prima facie covered under the activity of commercial or industrial construction services. We also note that the demand is barred by limitation. We accordingly are of the view that the applicant has a good prima facie case on merits and we dispense with the condition of pre-deposit of service tax as also penalties imposed upon them and stay recovery thereof during the pendency of the appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT New Delhi confirmed service tax against the applicant for providing services related to construction of parks, circles on roads, maintenance and repair of roads, and development of parks with boundary walls. The demand related to maintenance and repair of roads and park construction was considered taxable. However, the repair of roads was proposed to be exempted retrospectively in the Finance Bill of 2012. The construction of parks was not considered commercial or industrial construction services. The demand was also found to be barred by limitation. The tribunal dispensed with the pre-deposit of service tax and penalties during the appeal process.