Runways not equivalent to roads

and thus not covered by any exemption notification or any section under the Finance Act, 1994

D.P. Jain Co. Infrastructure Pvt. Ltd. vs. CCE, Nagpur. (2013-TILO-1029-CESTAT-MUM)

Facts:

The appellants discharged service tax under GTA services, Site Formation and Clearance, Excavation, Earth Moving and Demolition Services. They were also engaged in repairs and strengthening of roads, improvement and resurfacing of run- ways for airport authorities & military airbases and construction of toll plazas on which service tax was not discharged and the department contended to levy and confirmed the same along with interest and penalties.The appellants contended that service tax on management maintenance and repair of roads was exempted from service tax vide Notification NO.24/2009-ST dated 27-07-2009 and further vide insertion of section 97 in the Finance Act, 2012 for the prior period 16-06-2005 to 26-07-2009 and also contended thatrunway was nothing but a species of road which was also excluded from the definition of "Commercial or Industrial Construction Service". Further, in respect of the construction of runways, they contended that part of it related to defence airports which were non-commercial government buildings and thus exempt vide section 98 as inserted inthe Finance Act, 2012.

The respondents submitted to remand the matter pertainingto the exemption uls, 97and 98 of the Finance Act, 2012 as they were inserted subsequently and strongly refuted the plea that runways could beconsidered as a specie of road, in the light of the definition of 'runway' accordingto International Civil AviationOrganisation.

Held:

If the definition of 'Commercial or IndustrialConstruction Service' excluded construction of roads there would have been no need to exempt the same vide a notification and further vide insertion of a section and thus the Hon. Tribunal remanded the matter considering the retrospective exemption available vide the newly inserted sections97 read with Notification NO.24/2009-ST dated 27-07-2009 and section 98 of the Finance Act,2012