2019 (2) TMI 1305 - AT - Service Tax

Taxability - Management, Maintenance and Repair of Roads for the period 2005-2006 to 2008-2009 - GTA service on reverse charge mechanism - Held that - As regard taxability of Management, Maintenance and Repair of Roads, the same was exempted retrospectively by Section 97 of the Finance Act, 1994 - As per Section 97 the service of Management, Maintenance and Repair of Roads is exempted for the period from 16.06.2005 to 26.07.2009 where under the period of the present case is covered. Accordingly, the demand of Management, Maintenance and Repair of Roads is not sustainable and the same is set aside. GTA service - Held that - The facts whether the consignment note was issued or otherwise has not been presented before the adjudicating authority, therefore, the matter related to GTA service needs reconsideration - matter on remand. Appeal allowed in part and part matter on remand.

Summary

Issues Involved:
Taxability of services - Management, Maintenance, and Repair of Roads for 2005-2006 to 2008-2009
GTA service on reverse charge mechanism

Analysis:

Taxability of Management, Maintenance, and Repair of Roads:
The appellant argued that these services were retrospectively exempted under Section 97 of the Finance Act, 2012. The said section exempts the service tax on management, maintenance, or repair of roads from June 16, 2005, to July 26, 2009. Citing this provision, the demand for these services was deemed unsustainable. The tribunal concurred, setting aside the demand for Management, Maintenance, and Repair of Roads due to the retrospective exemption provided under Section 97 of the Finance Act, 1994.

GTA Service on Reverse Charge Mechanism:
Regarding the GTA service tax, the appellant contended that as no consignment note was issued by the service provider, the transportation did not fall under the definition of Goods Transport Agency (GTA) service. However, the issue of whether a consignment note was issued or not was not raised before the adjudicating authority. Consequently, the tribunal remanded this matter back to the adjudicating authority for reconsideration. The tribunal emphasized the need for a factual determination on the issuance of consignment notes before making a decision on the tax liability under the reverse charge mechanism for GTA services.

In conclusion, the tribunal partially allowed the appeal by setting aside the demand for Management, Maintenance, and Repair of Roads due to retrospective exemption and remanded the matter concerning GTA services back to the adjudicating authority for further examination. The decision highlighted the importance of factual evidence, specifically on the issuance of consignment notes, in determining the tax liability for GTA services under the reverse charge mechanism.