2023 (9) TMI 1541 - AT - Service Tax

Exemption from service tax - activity of construction of bridges for railways - taxability in terms of N/N. 25/2012-ST dated 20.06.2012 w.e.f. 01.07.2012 - HELD THAT - With effect from 01.07.2012 in terms of Notification No. 25/2012- ST dated 20.06.2012, the assessee has been exempted from payment of service tax for services by way of construction, erection, commissioning or installation of original works pertaining to an airport, port or railways, including monorail or metro. Admittedly, the assessee has executed the works which pertain to construction of railways and it has been admitted by the respondent that the assessee has provided such services to M/s RITES Limited. The activity undertaken by the assessee is for construction of railways, therefore, the same is exempted in terms of N/N. 25/2012-ST dated 20.06.2012. Thus, no demand is sustainable against the assessee. As no demand is sustainable against the assessee, therefore, there is no merit in the appeal filed by the Revenue - appeal of assessee allowed.

Summary

The Appellate Tribunal CESTAT KOLKATA ruled in favor of the assessee, a Public Sector Unit, in a case involving construction of bridges for railways. The Tribunal held that the activity is exempt from service tax under Notification No. 25/2012-ST. The demand of Rs. 4,41,41,374/- was set aside, and the appeal filed by the Revenue was dismissed. The Miscellaneous Application for additional evidences was also disposed off.