Prima facie, Central Railway’s services of management and repair of railway sidings owned by private parties were exempt under Notification No.24/2009-ST, because in view of assessee it was an incident of maintenance and repair of railway tracks
In the instant case, the assessee, Central Railways Department, carried out maintenance and repairs of railway sidings owned by private parties. For said activity the revenue demanded service tax under category of management, maintenance or repairs services. On an application for stay, the Tribunal directed the assessee to make a predeposit of 50 per cent of the service tax demanded. Aggrieved by the order of Tribunal, assessee filed the instant appeal.
The High Court directed a waiver of pre-deposit with the following observations:
1. In view of Notification No. 24/2009-ST, as amended on 21-12-2010, management, maintenance or repair of railways was exempted;
2. Prima facie, from 21-12-2010, assessee's work of management and repair of railway sidings owned by private parties was exempt, because in view of assessee it was an incident of maintenance and repair of railway tracks;
3. For period prior thereto, since demand was levied against the Union Ministry of Railways, ends of justice would require that extent of deposit had to be scaled down. Hence, predeposit was waived off in part - Central Railway v. Commissioner of Central Excise & Customs [2013] 32 taxmann.com 95 (Bombay)
In the instant case, the assessee, Central Railways Department, carried out maintenance and repairs of railway sidings owned by private parties. For said activity the revenue demanded service tax under category of management, maintenance or repairs services. On an application for stay, the Tribunal directed the assessee to make a predeposit of 50 per cent of the service tax demanded. Aggrieved by the order of Tribunal, assessee filed the instant appeal.
The High Court directed a waiver of pre-deposit with the following observations:
1. In view of Notification No. 24/2009-ST, as amended on 21-12-2010, management, maintenance or repair of railways was exempted;
2. Prima facie, from 21-12-2010, assessee's work of management and repair of railway sidings owned by private parties was exempt, because in view of assessee it was an incident of maintenance and repair of railway tracks;
3. For period prior thereto, since demand was levied against the Union Ministry of Railways, ends of justice would require that extent of deposit had to be scaled down. Hence, predeposit was waived off in part - Central Railway v. Commissioner of Central Excise & Customs [2013] 32 taxmann.com 95 (Bombay)
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