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TMI Blog2013 (10) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Industrial Construction Service' under Section 65(105)(zzq) and 'Works Contract Service' under Section 65(105)(zzzzq). Further, under 'Maintenance and Repair Service' under Section 65(105)(zzg) the activity has also been exempted from levy of service tax and the same has been given retrospective effect from the date of inception of the levy. Thus, it is very clear that the construction and repair of roads have been specifically excluded from the scope of levy of service tax by the Government. The appellants have been providing services of construction of roads. To finance/compensate the cost of construction, the contractors have been allowed to collect toll charges and the toll charges have been collected on their own behalf and for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Government or to the persons who awarded the contracts to them. The service they have rendered is construction of roads which is not taxable under the Finance Act, 1994 and the same have been specifically excluded from the purview of service tax levy both under 'Commercial and Industrial Construction Service' as also under 'Works Contract Service'. Even in respect of maintenance and repairs of roads, service tax had been exempted vide Notification No. 24/2009-S.T., dated 27-7-2009 and the exemption has been given with retrospective effect in the budget 2012. Thus, it is evident that the Government did not want to charge any service tax on the activity of road construction. They were allowed to collect toll charges towards meeting the cos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms vide Circular No. 152/3/2012-S.T., dated 22-2-2012 have clarified as follows : "Subject: Toll in the nature of 'user charge' or 'access fee' paid by roads users - regarding. A representation has been received by the Board, seeking clarification regarding leviability of service tax on toll fee (hereinafter referred as 'toll') paid by users, for using the roads. The representation has been examined. 2. Service tax is not leviable on toll paid by the users of roads, including those roads constructed by a Special Purpose Vehicle (SPV) created under an agreement between National Highway Authority of India (NHAI) or a State Authority and the concessionaire (Public Private Partnership Model, Build-Own/Operate-Transfer arra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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