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TMI Blog2019 (6) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... ad. Re-laying of roads, filling pot holes etc., would amount to maintenance or repair activities - the respondent s activity of removing the gravel and laying the surface of the road with their similar material amounts to Maintenance and repair of the road. However, in view of the retrospective amendment vide Section 97 of the Finance Act 1994, w.e.f. 28.05.2012, the services rendered with respect to Maintenance or Repair of roads from 16.06.2005 to 26.07.2009 is not chargeable to service tax and if any amount was collected as service tax on this ground, the same has to be refunded - no service tax is chargeable under Management, Maintenance or Repair service. Appeal dismissed - decided against appellant. - Service Tax APPEAL No. 543 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he demand on Commercial or Industrial Construction Service along with interest. He, however, set aside the demand of service tax under Management, Maintenance or Repair service. The present appeal is filed by Revenue against this order of the first appellate authority setting aside the demand under Management, Maintenance or Repair Service. 2. Ld. DR submits that as far as the demand under Commercial or Industrial Construction Service is concerned, it has reached finality because the appellant has agreed to the demand and has also paid part of the amount. As far as the demand under Management, Maintenance or Repair Service is concerned, Revenue is aggrieved by the fact that the first appellate authority has set aside the demand und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith respect of laying of roads. 4. As an alternative argument, he would submit that Section 97 of the Finance Act, 1994 was introduced w.e.f. 28.05.2012 which reads as follows: 97. (1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of roads, during the period on and from the 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive). (2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times. (3) Notwithstanding anything contained in this Chapter, an application for the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or maintaining a road. At times such repair or maintenance is only confined to filling the pot holes and at times it extends to removing the entire surface and laying a new level of bitumen and tar. The Board s Circular No. 110/4/2009-ST, dated 23.02.2009 also clarifies that the following should be treated as construction activities and not maintenance activities. a) Laying of a new road. b) Widening of narrow road to broader road (such as conversion of a two land road to a four land road). c) Changing road surface (gravelled road to metalled road/metalled road to blacktopped/blacktopped to concrete etc.). 7. In other words, this circular clarifies that when the nature of road itself gets changed, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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