2014 (9) TMI 33 - AT - Service Tax

Maintenance or Repair Service - Held that - no service tax can be levied on services, which are under the category of Management, Maintenance or Repair of roads for the period from 16.6.2005 to 26.7.2009. In view of the above, impugned order is set aside - Decided in favour of assessee.

Summary

Issues:
- Appeal against demand of service tax for Maintenance or Repair Service in respect of roads for the period 16.6.2005 to 31.3.2006.

Analysis:
The appellant filed an appeal challenging the imposition of service tax on Maintenance or Repair Service provided for roads between 16.6.2005 to 31.3.2006. The impugned order confirmed the demand based on this service. However, it was noted that Maintenance or Repair of roads during the period 16.6.2005 to 26.7.2009 is exempted by Section 97 of the Finance Act, 2012. This section specifically exempts the levy of service tax on Management, Maintenance, or Repair of roads during the mentioned period. The relevant provisions of the Finance Act were reproduced to support this exemption. It was highlighted that no service tax can be imposed on services falling under this category for the specified period.

Therefore, considering the provisions of the Finance Act exempting service tax on Management, Maintenance, or Repair of roads between 16.6.2005 to 26.7.2009, the Tribunal set aside the impugned order and allowed the appeal. This decision was based on the clear exemption provided by Section 97 of the Finance Act, which prevents the levy of service tax on such services during the mentioned timeframe. The Tribunal's ruling was in line with the legal provisions outlined in the Finance Act, ensuring compliance with the exemption criteria for the specified service category related to roads.