2012 (10) TMI 519 - AT - Service Tax

CESTAT Chennai allows appeal, condones delay, moot issue due to legislative amendment

The appeal was allowed by CESTAT, CHENNAI. The delay in filing the appeal was condoned, and the issue became moot due to a legislative amendment. The ... Condonation of delay - retrospective non-levy of service tax in respect of management, maintenance or repair of roads for the period 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive) - effect of amendment by Finance Act, 2012 inserting Section 97(1) of the Finance Act, 1994Condonation of delay - Delay in filing the appeal was condoned. - HELD THAT: - The Tribunal considered the application for condonation of delay and the reasons set out in the miscellaneous application. On hearing both parties, the Tribunal found the explanation for delay satisfactory and allowed the application for condonation, thereby admitting the appeal for adjudication on merits. [Paras 1]MA(COD) allowed and delay condoned.Retrospective non-levy of service tax in respect of management, maintenance or repair of roads for the period 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive) - effect of amendment by Finance Act, 2012 inserting Section 97(1) of the Finance Act, 1994 - Impugned demand/order in respect of service tax for management, maintenance or repair of roads for the specified period does not survive in view of Section 97(1) as inserted by the Finance Act, 2012. - HELD THAT: - Both parties agreed that, by virtue of the amendment effected by the Finance Act, 2012, Section 97(1) of the Finance Act, 1994 provides that no service tax shall be levied or collected in respect of management, maintenance or repair of roads during the period stated. Applying that provision, the Tribunal concluded that the liability challenged in the appeal is extinguished for the specified period and the impugned order cannot be sustained. [Paras 2, 3]Impugned order set aside and the appeal allowed on merits.Final Conclusion: The application for condonation of delay was allowed and, on merits, the appeal was allowed because Section 97(1) (as inserted by Finance Act, 2012) precludes levy or collection of service tax in respect of management, maintenance or repair of roads for the period 16th June 2005 to 26th July 2009; the impugned order was set aside and the stay petition disposed of. The appeal was allowed by the Appellate Tribunal CESTAT, CHENNAI. The delay in filing the appeal was condoned. The issue did not survive due to an amendment by Finance Act, 2012. The impugned order was set aside, and the appeal was allowed.