2016 (2) TMI 472 - HC - Service Tax

Management, Maintenance or Repair of roads (MMR) - Retrospective effect of Notification No.24/2009-Service Tax, dated 27.07.2009 - Held that - The question as to whether the above Notification would have retrospective effect for the period from 2005 to 2009, was also answered by Notification No.24/2009-Service Tax, dated 27.07.2009, which was issued under Section 93 of the Finance Act, 1994. The special provision for exemption in certain cases relating to service tax on repair of roads was made in Section 97 of the Finance Act, 1994. The Notification No.24/2009 states that the exemption has been extended even for the earlier period from 16.06.2005 to 26.07.2009. - Writ petition allowed - Decided in favor of assessee.

Summary

Issues: Challenge to demand for service tax; retrospective effect of notification exempting taxable services related to roads.

In this judgment by the High Court of Madras, the Writ Appeals were filed challenging the demand for service tax made against the appellants related to the years 2005 to 2009. The Government had issued Notification No.24/2009-Service Tax, dated 27.07.2009, exempting taxable services related to management, maintenance, or repair of roads. Subsequently, Notification No.25/2012-Service Tax, dated 20.06.2012, exempted various taxable services, including construction, repair, and maintenance of roads. The question of the retrospective effect of this later notification for the period from 2005 to 2009 was addressed. The Notification No.24/2009 clarified that the exemption extended even for the earlier period from 16.06.2005 to 26.07.2009.

The court analyzed the notifications and held that the later notification exempting services related to roads had retrospective effect. Consequently, the Writ Appeals were allowed, and the orders challenged in the Writ Petitions were set aside. No costs were awarded, and the connected miscellaneous petitions were closed.