2012 (7) TMI 137 - AT - Service Tax

CESTAT rules in favor of appellant, exempts Maintenance/Repair services from Service Tax liability

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal, setting aside the adjudicating authority's decision to confirm the waiver of pre-deposit of ... Stay Petition - waiver of pre-deposit - service rendered by the appellant is towards the construction of the roads which was sought to be brought under the category of management, maintenance or repair of the roads for the period 16.06.2005 to 27.07.2009 – Held that:- Issue is covered by Section 97 of Finance Act, 2012 - Finance Act has clearly stated that no Service Tax can be levied on the services which are under the category of Management, Maintenance or Repair of the roads for the period – In favor of assessee Issues:Waiver of pre-deposit of Service Tax confirmed by the adjudicating authority for Maintenance or Repair service for the period 16.06.2005 to 27.07.2009.Analysis:1. The Stay Petition was filed seeking waiver of pre-deposit of Service Tax, interest, and penalty imposed for Maintenance or Repair service for the mentioned period. The appellant argued that the issue falls under Section 97 of the Finance Act, 2012, which exempts such services from Service Tax liability. The Chartered Accountant representing the appellant highlighted the provisions of Section 97 of the Finance Act, 2012.2. The Revenue contended that the exemption under Section 97 of the Finance Act, 2012, was specific to a particular period and service. As the issue was deemed narrow, the appeal was taken up for disposal after allowing the application for waiver of pre-deposit.3. The service provided by the appellant pertained to the construction of roads, categorized as management, maintenance, or repair of roads for the period in question. Section 97 of the Finance Act, 2012, was cited, which clearly stated that no Service Tax shall be levied on such services during the specified period.4. The Tribunal observed that the Finance Act explicitly exempted services falling under the category of Management, Maintenance, or Repair of roads from Service Tax for the relevant period. Consequently, the impugned order was set aside, and the appeal was allowed.This detailed analysis of the judgment from the Appellate Tribunal CESTAT, Ahmedabad demonstrates the application of Section 97 of the Finance Act, 2012, in exempting Service Tax on Maintenance or Repair services related to the construction of roads for the period 16.06.2005 to 27.07.2009. The decision reflects a clear interpretation of the law and its implications on the tax liability of the appellant's services.