Is Runway a Road?
THIS interesting question had come up before the CESTAT, WZB.
“Maintenance or repair of roads” was exempted by notification 24/2009-ST dated 27th July, 2009 and the said exemption was given retrospective effect for the period starting from 16/06/2005 onwards till 26th July, 2009 by the Finance Act, 2012 by insertion of a new section 97 in the Finance Act, 1994.
The appellant claimed that they are entitled for the benefit of the exemption and the retrospective benefit granted since they were engaged in the maintenance or repair of runways and that the same is a species of a road. They also relied on the CESTAT decision in Shilpa Constructions Pvt. Ltd. (2010-TIOL-1132-CESTAT-AHM) wherein it was held that a ‘driveway to a petrol pump also amounts to construction of road as a driveway facilitates people to drive to the petrol pump for filling the fuel'.
The CESTAT had asked the appellant to make a pre-deposit of Rs.3crores.
Against this decision the appellant had filed an appeal before the Bombay High Court and while setting aside the order directing the appellant to make a pre-deposit, the High Court directed the Tribunal to hear the appeal without pre-deposit. See 2012-TIOL-1030-HC-MUM-ST.
The matter was heard recently and the Bench came to the conclusion that in common understanding road and runways are not one and the same; that they are distinct and different; that while road is a means of travel from one place to another for the purpose of transportation of passengers or goods or animals, the runway is not a means of travel at all; while road is defined as a track suitable for road traffic, a highway, a roadway etc., runway is defined as a firm strip of ground for aircraft to take off from and land on.
We bring you this roadworthy decision in Breaking News on Monday.