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2023 (8) TMI 349 - AT - Service TaxLevy of Service Tax - maintenance or repair service in respect of roads - HELD THAT - It is an admitted fact that the Appellant has provided repair, management and maintenance of roads services for NHAI and others, which fall under the category of maintenance or repair service. It is found that by virtue of insertion of Sec 97(1) vide Finance Act, 2012 with retrospective effect from 16.06.2005, applicable till 26.07.2009, no service tax is leviable on the activity of repairs, management and maintenance of roads. The impugned order set aside - appeal allowed.
Issues involved:
The issue involved in this Appeal is whether the Appellant/Assessee is liable to pay service tax on the activity of management, maintenance, and repairs of roads. Details of the Judgment: The Show Cause Notice (SCN) was issued proposing to demand service tax for the period April 2007 to March 2009, as it appeared that the Appellant provided maintenance or repair service for roads. The Appellant had taken registration in March 2008 and was paying service tax. The SCN proposed a demand of Rs.7,14,23,581/- with penalties under Sec 77 & 78, along with late fee under Sec 70(1) of the Finance Act, 1994. The SCN was adjudicated confirming the demand with penalties imposed under various sections of the Act. The Appellant appealed to the Tribunal, citing the insertion of Sec 97(1) in the Finance Act, 1994, which exempts service tax on management, maintenance, or repair of roads from June 16, 2005, to July 26, 2009. The Appellant also relied on a precedent ruling of the Tribunal and a judgment of the Madhya Pradesh High Court, both supporting the non-leviability of service tax on road repair and maintenance. The Revenue argued that the amendment came later than the Impugned Order and that a refund window of six months was provided from the date of passing the Finance Act. The Tribunal noted that the Appellant provided services falling under maintenance or repair of roads category. Considering the retrospective effect of Sec 97(1) of the Finance Act, the Tribunal allowed the Appeal, setting aside the impugned order and entitling the Appellant to consequential benefits. Separate Judgment: No separate judgment was delivered by the judges in this case.
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