Custom, Excise & Service Tax Tribunal
Union Of India Ministry Of Railway vs Commissioner Of Central ... on 10 November, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order No. 21976 / 2014 Application(s) Involved: ST/COD/27678/2013 in ST/27349/2013-DB ST/Stay/27677/2013 in ST/27349/2013-DB Appeal(s) Involved: ST/27349/2013-DB [Arising out of OIO No.07-2012 dated 07/09/2012 passed by Commissioner of Central Excise , CALICUT ] Union Of India Ministry Of Railway Southern Railway, R/p, By The Senior Divisional Commercial Manager, Palakkad Didvision PALAKKAD - 678002 KERALA Appellant(s) Versus Commissioner of Central Excise,Customs and Service Tax CALICUT NULL CENTRAL REVENUE BUILDING, MANANCHIRA, CALICUT, KOZHIKODE, - 673001 KERALA Respondent(s)
Appearance:
Shri TULAJAPPA KALBURGI, Adv. III MAIN, 1ST CROSS, DESHAPANDE NAGAR, B/H, SARAWATI COMPLEX, HUBLI - 580029 KARNATAKA For the Appellant Dr. A.K. Nigam, Addl. Commissioner(AR) For the Respondent CORAM:
HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER HON'BLE SHRI S.K. MOHANTY, JUDICIAL MEMBER Date of Hearing: 10/11/2014 Date of Decision: 10/11/2014 Order Per : B.S.V.MURTHY On the ground that the Southern Railway is required to pay service tax on the sale of space of time for advertisement provided by them during the period 01/05/2006 to 30/11/2010, proceedings were initiated culminating in confirmation of demand for service tax of Rs.1,88,00,803/- and interest. Further penalties under Sections 76, 77 & 78 have also been imposed.
2. The appellants had filed the appeal with a delay of 173 days which has been explained as arising due to the consultation between the Law Officer, the Railway advocate and the procedure thereafter. Having regard to the fact that Railways is a Government department and having satisfied that the delay has been explained to our satisfaction, we condone the delay in filing the appeal. Even though only stay application has been listed, we propose to take up the appeal itself since the issue falls within a narrow compass and can be settled straightaway.
3. Learned counsel on behalf of the appellants submits that retrospective exemption has been provided for services rendered by the Railways prior to the first day of July 2012 to the extent show-cause notices have been issued upto the 28th day of February 2013. For better appreciation, Section 99 inserted by the Finance Act 2013 w.e.f. 10/05/2013 is reproduced below:-
Section 99. Special provision for taxable services provided by Indian Railways:
Notwithstanding anything contained in Section 66, as it stood prior to the 1st day of July, 2012, no service tax shall be levied or collected in respect of taxable services provided by the Indian Railways during the period prior to the 1st day of July, 2012, to the extent notices have been issued under Section 73, up to the 28th day of February, 2013.
4. Since the retrospective exemption has been provided, apparently there is no liability on the appellant to pay service tax. Accordingly, the impugned order is set aside and appeal is allowed with consequential relief, if any, to the appellant.
(Operative portion of the order has been pronounced in open court) S.K. MOHANTY JUDICIAL MEMBER B.S.V.MURTHY TECHNICAL MEMBER 3