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2024 (5) TMI 197 - AT - Service TaxExemption from Service Tax - providing gravel topping and laying laterite along the build road Biennial Maintenance of roads inside mines - benefit of N/N. 24/2009 dated 27.07.2009 - HELD THAT - It is an undisputed fact that the appellant had rendered inter alia the services of road construction in private commercial premises of Neyveli Lignite Corporation, and thus claimed the benefit of Notification No.24 ibid. The Notification No.24/2009-ST dated 27.7.2009 provides for exemption of service tax on management, maintenance or repair of roads and the new Section 97 introduced vide Finance Act, 2012 gave retrospective amendment to this notification w.e.f/ 16.6.2005. The above said Notification No.24/2009-ST or amendment Notification No.54/2010-ST dated 21.12.2010 and new Section 97 of Finance Act, 2012 does not stated in any place that the exemption from payment of service tax is only with respect of public utility roads . The orders relied upon in the case of RAJENDRA SINGH BHAMBOO. VERSUS C.E. AND S.T. JAIPUR-I 2018 (4) TMI 772 - CESTAT NEW DELHI and NMC INDUSTRIES PVT LTD VERSUS COMMISSIONER OF SERVICE TAX II 2020 (3) TMI 319 - CESTAT MUMBAI are apt where it was held that 'Since there is no ambiguity in plain reading of the definition and in view of the admitted fact that the appellant had constructed roads for different commercial entities/organization, the benefit of the exclusion provided in the definition clause should be available to it.' The demand raised and confirmed against the taxpayer in the case on hand cannot sustain - the impugned order is set aside - appeal allowed.
Issues involved:
The issues involved in this case include the non-remittance of applicable service tax by the appellant for services provided to M/s. Neyveli Lignite Corporation Ltd., Neyveli, and the dispute regarding the sustainability of the service tax demand. Details of the Judgment: Issue 1: Non-remittance of Service Tax The appellant had entered into contracts with M/s. Neyveli Lignite Corporation Ltd., Neyveli, for various services but had not remitted the applicable service tax. The revenue issued a show-cause notice proposing to recover the service tax, which was confirmed in the Order-in-Original. The appellant appealed before the First Appellate Authority, which dismissed the appeal, leading to the present appeal before the forum. Issue 2: Sustainability of Service Tax Demand The main issue before the forum was whether the demand of service tax on the appellant is sustainable in the eye of law. The appellant claimed exemption from service tax based on Notification No.24/2009 dated 27.07.2009, which provided for exemption on management, maintenance, or repair of roads. The forum noted that the notification and subsequent amendments did not specify that the exemption was only for public utility roads. Citing relevant case laws, the forum held that the benefit of exclusion from service tax should be available irrespective of whether the roads were for public utility or private use. Therefore, the demand raised and confirmed against the taxpayer was deemed unsustainable. Conclusion Based on the analysis of the relevant provisions and case laws, the forum set aside the impugned order, allowing the appeal in favor of the appellant. The judgment was pronounced in open court on 01.05.2024, granting the appellant consequential benefits, if any, as per law.
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