The respondent assessee was undertaking laying of railway lines for NTPC. A demand of service tax amounting to about Rs.16 crores along with interest and penalty were confirmed. The case of the Revenue was that: (i) exemption under notification no. 25/2012-ST was only for government or public railway and not private railway siding; and (ii) it was material handling system for NTPC for loading and unloading of coal from wagons. The assessee challenged the order before CESTAT.
The CESTAT allowed the appeal. It was held that term “railway” was not defined under the Finance Act and hence, definition under Railways Act cannot be borrowed. In any event, under definition of “railway” under Railways Act, it covered even private railway. The Revenue filed 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)
