TaxTMI 
TaxTMI 
2009 (8) TMI 638
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....under the category of Management Maintenance or Repair services under the Provisions of the Finance Act, 1994. 4. The undisputed facts are that the appellant herein bid for the contract of the maintenance/management/re-asphalting of the existing roads. The undisputed facts is also that the said reasphalting or improvement of the existing roads are being undertaken for the National Highway Authority etc. The lower authorities have come to the conclusion that the activities or the services rendered by the applicant would fail under the category of management, maintenances or repair of the immovable properly. The said findings of the adjudicating authority are reproduced herein below. "29. It is the contention of the noticee that the activity of improvement/reasphalting of the existing roads will be formation of new road and nowhere linked with Management, Maintenance or repair service. Before going into this issue it would be essential to understand the terms "maintenance" "repair?," improvement", and "asphalting". According to the Chambers Dictionary, 10th edition the meanings of the above words are as follows: Maintenance "the act of maintaining, continuance; the means ....
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...."That is, that you may maintain by keeping in the same state, or you may maintain by keeping in the same state and improving the state.- always bearing in mind that it must be maintenance as distinguished from alteration of purpose". (Per JESSEL, MR. in Sevenoaks Ry. V. L.C. & D. Ry. 48 LJ Ch. 513; 11Ch. D625.)]" (emphasis added) Further Law Lexicon at Page 1657 defines maintenance and repair when applied to a street as under: "MAINTENANCE AND "REPAIR", when applied to a street practically mean one and the same thing. To repair means to restore to a sound or good state after decay, injury, dilapidation, or partial destruction. The word "maintain" does not mean to provide or construct, but means to keep up, to keep from change to preserve. To hold or keep in any particular state, or condition; to keep up. "The verb" to maintain' signifies to support what was already been brought into existence." Although the Law Lexicon does not specifically refer to improvements of roads, improvement of land, as mentioned at Page 893 is asunder: "Improvement (of land) Esecriche, in his Dictionary divides improvements on land into three classes-necessary, beneficial and voluntary. Necess....
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....ve the quality of the road and will be treated as road maintenance. During As phalting a bituminous layer is laid over the base course to ensure that rain water does not damage the base, that moving traffic does not remove the metal and other material. The bituminous layer also provides for dust free and comfortable riding. Keeping the traffic conditions on roads many types of bituminous layers are constructed. Some layers act as base course and some act as surface, course only. Asphalting of roads are part of surface rejuvenation and surface treatment of roads. Bituminous surfacing is traditionally car out manually. However, the surfacing done with hot mix and payers ensures uniform thickness and good quality toads. In most of the cases it is seen that it is asphalted roads which are subjected to re-asphalting. 30. It is the noticee's contention that re-asphalting is a process of formation of roads. This explanation is not acceptable. The very purpose of re asphalting the road is to ensure that the wear and tear that has made the existing road less motorable is repaired and improved to regain its old glory: It does not increase the road's load bearing capacity but it reinstates....
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....Bangalore [2009 (16) S.T.R. 39 (Tri.-Bang.) = 2009-TIOL-1114-CESTAT-Bang.] and also the decision of the Tribunal in the case Dr lal Path Lab. Pvt. Ltd. v. CCE, Ludhiana [2006 (4) S.T.R. 527] will cover the issue. He submits that all the contracts which are entered by the appellants for the improvement/reashpalting are works contracts as per the registration granted by Karnataka VAT Act. 5. Learned JCDR on the other hand would submit that the entire issue is squarely covered by the definition of the management, maintenances/repairs. She submits that the adjudicating authority has given a detailed finding to hold that these activities would fall under management, maintenance or repair services. It is her submission that prior to 1-6-2007, the service will be covered under the category of management, maintenances or repair services. She also draws our attention to the parawise comments given by the Revenue in support of her contention. As regards the demand of Rs. 57,376/-, it is her submission that they are liable to pay this amount as the staff quarters are for the purpose of residential accommodation of the staff of New Mangalore Port Trust. 6. On a careful consideratio....