Service tax on road maintenance barred by statutory exclusion for the specified period, making the demand unsustainable.

Section 97(1) of the Finance Act, 2012 bars levy or collection of service tax on management, maintenance or repair of roads for the specified period, and the activity described fell within that exclusion. The tribunal view noted that the road-related services undertaken during 16.06.2005 to 26.07.2009 were covered by the statutory protection and aligned with earlier tribunal decisions on the point. On that basis, the service tax demand was held unsustainable and the matter was decided in favour of the assessee.

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Issues: Whether service tax could be levied on management, maintenance or repair of roads for the period 16.06.2005 to 26.07.2009 in view of section 97(1) of the Finance Act, 2012.

Analysis: Section 97(1) of the Finance Act, 2012 provides that no service tax shall be levied or collected in respect of management, maintenance or repairs of roads during the specified period. The activity undertaken by the appellant fell within that category and the relevant period was covered by the statutory exemption. The view was consistent with the earlier tribunal decisions relied upon.

Conclusion: The service tax demand was not sustainable and the issue was decided in favour of the assessee.

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