75th Founding Day Lecture Meeting on “India@2030” Know More

March 2013

Maintenance and repairs of runways to receive same treatment as that of roads and thus exempt from the levy of service tax.

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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Facts

Appellant was engaged in the maintenance and repairing of roads and runways and was registered under the category of “management, maintenance or repairs”. SCN was issued proposing to levy service tax on repairs and maintenance of roads and runways. The adjudicating authority as well as CCE Appeals confirmed the levy. The Honourable Tribunal, while partly dispensing with the pre-deposit requirement, held that maintenance and repairs of roads are exempt and not runways and hence ordered proportionate pre-deposit of Rs. 3 crore.

Held

The Honourable High Court observed that runways at the airport are species of the genus ‘road’ and hence, should receive the same treatment as roads for service tax purpose and hence, directed the Tribunal to hear the appeal afresh on the merits of the case at the earliest, without insisting on pre-deposit, and the Tribu

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