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2024 (1) TMI 520 - CESTAT AHMEDABADClassification of services - Management Maintenance or Repairing Services or not - GIDC is collecting charges towards the maintenance and providing common facilities such as approach roads, street lights, etc. - HELD THAT:- This Tribunal in this appeal vide its order no. A/12479/2018 dated 30.10.2018 [2018 (11) TMI 363 - CESTAT AHMEDABAD] allowed the appeal by holding that there is no taxability on Maintenance Charges collected by State Industrial Development Corporation from the industrial plot owners. From the finding of the Hon’ble Supreme Court in KRISHI UPAJ MANDI SAMITI, NEW MANDI YARD, ALWAR VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, ALWAR [2022 (2) TMI 1113 - SUPREME COURT], it is seen that the statutory levy has been interpreted on the basis that if the levy is mandatory than only it is statutorily and if it is discretionary then it cannot be treated as statutory levy. The Hon’ble Apex Court interpreted the Section 9 (2) (xvii) that as per the said section word “may” was used which indicates that it is not a mandatory levy hence the exemption provided as per the board circular dated 18.12.2006 shall not apply. In the present case the demand was raised on the service of management, maintenance and repair service for which the charges are prescribed. In the Rule 13 wherein the words used are “Service charged determined from time to time shall have to be paid by the hirer to the corporation”. This clearly indicated that the charges for maintenance is mandatory hence it is clearly a statutory levy on which no service tax is chargeable as clarified in the board circular No. 89/7/06 dated 18.12.2006 read with observation of the Hon’ble Supreme Court in the case of Krishi Upaj Mandi Samiti and therefore, in the present case the charges being statutory levy, the same is not liable to Service Tax. The impugned order is set aside - Appeal is allowed.
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