2015 (12) TMI 265 - AT - Service Tax

Demand of service tax - sale of space or time for advertisement and renting of immovable property services - Held that - Section 99 was introduced into Finance Act, 1994 by the Finance Act, 2013 with effect from dated 10-5-2013, providing immunity from the levy and collection of service tax in respect of all taxable services provided by the Indian Railways during the period prior to 1-10-2012; so, however that no service tax in respect of taxable service provided by the Railway during the said period prior to 1-10-2012 need be refunded. The rendition of the services by the appellant was during the period covered by the provisions of Section 99 and no service tax was remitted. - since the authority for levy and collection of service tax from the Indian Railways stands eclipsed by legislative edict, the appeal is allowed and orders of the primary and appellate authorities (impugned herein) are set aside - Decided in favour of assessee.

Summary

Issues:
1. Condonation of delay in preferring the appeal.
2. Service tax liability on Indian Railways for sale of space or time for advertisement and renting of immovable property services.
3. Introduction of Section 99 into Finance Act, 1994 and its impact on service tax liability.
4. Immunity provided by Section 99 to Indian Railways for service tax on taxable services provided before 1-10-2012.

Condonation of Delay:
The Tribunal noted that no wholly satisfactory cause was pleaded for the delay of 78 days in filing the appeal. However, considering the peculiar circumstances of the case, the delay was condoned, and the appeal was disposed of after hearing both parties.

Service Tax Liability on Indian Railways:
The appeal was filed against an adjudication order confirming service tax liability, interest, and penalty on Indian Railways for providing sale of space or time for advertisement and renting of immovable property services. The authorities below upheld the tax liability imposed on the Indian Railways.

Introduction of Section 99 and Impact on Service Tax Liability:
Section 99 was introduced into the Finance Act, 1994 by the Finance Act, 2013, with effect from 10-5-2013. This section provided immunity from the levy and collection of service tax on all taxable services provided by the Indian Railways before 1-10-2012. It was noted that the services rendered by the appellant fell within the period covered by Section 99, and no service tax was required to be remitted.

Immunity under Section 99 for Indian Railways:
Due to the introduction of Section 99 and the immunity it provided to the Indian Railways for service tax on taxable services provided before 1-10-2012, the Tribunal held that the authority for levying and collecting service tax from the Indian Railways was eclipsed by the legislative edict. Consequently, the appeal was allowed, and the orders of the primary and appellate authorities confirming the tax liability were set aside.

This judgment highlights the Tribunal's decision to condone the delay in filing the appeal, the imposition of service tax liability on Indian Railways for specific services, the introduction of Section 99 providing immunity to Indian Railways for services provided before 1-10-2012, and the consequent allowance of the appeal based on the immunity granted under Section 99.