2018 (6) TMI 722 - AT - Service Tax

Management, Maintenance or Repair Service - the period involved is the same i.e. 16.6.2005 to 26.7.2009 - Held that - The service tax on management, maintenance or repair of roads for the period 16.6.2005 to 26.7.2009 has been exempted retrospectively - by Finance Act, 2012 (23 of 2012) dated 28.5.2012, a special provision Section 97 was introduced whereby exemption was granted for services relating to management, etc. of roads. Sub-clause (3) of section 97 by its non-obstinate clause provided that no service tax shall be levied or collected in respect of management, maintenance or repair of roads during the period from 16.6.2005 to 26.7.2009 (both days inclusive) - demand do not sustain - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Alleged short-payment of service tax under Management, Maintenance or Repair Service.
2. Applicability of exemption under Section 97 of the Finance Act, 2012 for the period from 16.6.2005 to 26.7.2009.

Analysis:
1. The appellants were issued show cause notice for short-payment of service tax under Management, Maintenance or Repair Service. The original authority confirmed the demand of service tax, interest, and penalties. The appellants challenged this before the Tribunal. The appellant argued that they had agreements with government bodies for maintenance and repair of roads. They relied on Section 97 of the Finance Act, 2012, which provided an exemption for services related to the management, maintenance, or repair of roads for the period from 16.6.2005 to 26.7.2009. The appellant contended that this exemption applied to their case, thus the demand was not sustainable.

2. The respondents reiterated the findings of the impugned order. The Tribunal considered Section 97 of the Finance Act, 2012, which exempted service tax on the management, maintenance, or repair of roads retrospectively for the period from 16.6.2005 to 26.7.2009. The Tribunal noted that the exemption provided by this section covered the period in question. Therefore, the demand for service tax could not be upheld. Consequently, the impugned orders were set aside, and the appeals were allowed with any consequential relief.

This judgment highlights the importance of statutory exemptions and the retrospective application of tax laws. The Tribunal's decision was based on a clear interpretation of the relevant provisions of the Finance Act, 2012, and their applicability to the appellant's case.