The respondent assessee was undertaking the laying of railway lines for NTPC. A demand for service tax amounting to about Rs. 16 crores, along with interest and penalty, was confirmed. The case of the revenue was that.
- Exemption under notification no. 25/2012-ST was only for government or public railway not private railway siding, and
- It was a material handling system for NTPC for loading and unloading coal from wagons. The assessee challenged the order before CESTAT.
The CESTAT allowed the appeal. It was held that the term “railway” was not defined under the Finance Act, and hence, the definition under the Railways Act cannot be borrowed. In any event, under the definition of “railway” under the Railways Act, it covered even private railways. The Revenue filed an appeal before the Supreme Court.
The Supreme Court dismissed the appeal filed by the Service Tax department, finding no reason to interfere with the findings of CESTAT.
Commr. of CGST vs. Konkan Railway Corporation Ltd.—Diary No. 22280 of 2023 (SC)
