Case Law Details
B. Ramanaiah Constructions Vs Commissioner of Central Excise & Service Tax (CESTAT Hyderabad)
Introduction: A landmark judgment was recently pronounced by the CESTAT Hyderabad in the case of B. Ramanaiah Constructions vs Commissioner of Central Excise & Service Tax. The case delves into the applicability of service tax on road management, maintenance, and repair services provided to NHAI.
Analysis: The Revenue department, through an SCN dated 16.08.2010, proposed a service tax demand of over Rs. 7 crore for services rendered by the Appellant from April 2007 to March 2009. The grounds for the demand were rooted in the belief that maintenance and repair of roads were taxable services starting from 16.06.2005.
Upon contesting the SCN, the proposed demand was upheld and penalties imposed on the Appellant. However, the Appellant’s contention, based on Section 97(1) of the Finance Act, 1994 (inserted retrospectively by the Finance Act, 2012), argued that no service tax should be levied on road repair, management, and maintenance from 16.06.2005 to 26.07.2009. The learned counsel also cited prior judgments echoing similar perspectives.
The Revenue, while recognizing the retrospective amendment, highlighted the time constraints related to refund claims post the insertion of Section 97(1) in the Finance Act.
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