Triveni Engicons Private Limited Vs Commissioner of C.G.S.T. and Central Excise (CESTAT Kolkata)
Summary: The appellant, Triveni Engicons Private Limited, was engaged in providing works contract services for construction of railway infrastructure, including laying tracks and other supporting structures. The project was awarded by M/s. Damodar Valley Corporation for its Mega Projects at various locations, requiring dedicated railway tracks and supporting structures for its exclusive use. The appellant did not pay Service Tax on the ground that the activity was exempt under Notification No. 17/2005-S.T. dated 07.06.2005 for the period up to 30.06.2012 and under Notification No. 25/2012-S.T. dated 20.06.2012 with effect from 01.07.2012. The period in dispute was 2011-12 to 2015-16.
A Show Cause Notice proposed Service Tax demand on the ground that the railway infrastructure was not covered by the exemption because the exemption was considered applicable to railways used for public carriage, whereas the tracks in question were constructed and used by M/s. Damodar Valley Corporation. The adjudicating authority accordingly confirmed the demand, against which the appellant preferred the appeal before the Tribunal.
The principal issue before the CESTAT Kolkata was whether construction of railway infrastructure, including tracks, was liable to Service Tax or entitled to exemption under Notification No. 17/2005-S.T. dated 07.06.2005 and Notification No. 25/2012-S.T. dated 20.06.2012. The Tribunal considered the earlier decision in M/s. Hari Construction & Associates Pvt. Ltd. v. Commissioner of C.G.S.T. & Excise, Patna II, Final Order No. 76168 of 2023 dated 13.07.2023 in Service Tax Appeal No. 79066 of 2018.
