2014 (6) TMI 490 - AT - Service Tax

Activity undertaken for plying the buses, inter-State and intra-State - Contract carriage permit - Demand of Service Tax - exemption Notification No. 20/2009-S.T., dated 7-7-2009 - Held that - activity undertaken by the appellants was exempted by Notification No. 20/2009-S.T., dated 7-7-2009 and the retrospective effect was granted to the exemption through Section 75 of the Finance Act, 2011 and the same is applicable from 1-4-2000. Therefore, the activity undertaken by the appellants is not chargeable to Service Tax with effect from 1-4-2000 and admittedly, in this case the period involved is 1-4-2000 to 31-3-2004. Therefore, no demand can survive - Decided in favour of assessee.

Summary

The appellate tribunal in Chennai allowed the appeal against an impugned order demanding Service Tax of Rs. 3,13,658 for the period 1-4-2000 to 31-3-2004 for bus services between Chennai - Coimbatore and Chennai - Cochin under a 'contract carriage permit'. The exemption from Service Tax was granted retrospectively from 1-4-2000, leading to the decision to set aside the impugned order and grant consequential relief.