Cement Corporation of India Ltd. Vs Commissioner of CGST (CESTAT Kolkata)
The CESTAT Kolkata considered an appeal by Cement Corporation of India Limited against the order confirming service tax demands arising from an audit covering June 2015 to March 2017. A show cause notice dated 02 June 2020 had proposed a total demand of Rs.1,49,07,938 under five categories: Rs.1,24,61,772 on services received from Indian Railways for construction of railway sidings; Rs.13,45,733 on royalty paid to the State Government for extraction of limestone; Rs.1,46,250 on works contract service; Rs.53,803 towards Swachh Bharat Cess (SBC) and Krishi Kalyan Cess (KKC); and Rs.9,00,380 relating to Cenvat credit allegedly availed on ineligible documents. The Additional Commissioner confirmed the demands with interest and penalty on 08 November 2021, and the Commissioner (Appeals) upheld them on 07 June 2023.
On the demand of Rs.1,24,61,772 relating to construction of a railway siding, the Tribunal examined Notification No. 25/2012-ST dated 20 June 2012, which exempted services by way of construction, erection, commissioning or installation of original works pertaining to an airport, port or railways, including monorail or metro. The lower authority had denied the exemption by relying on the definition of “railways” under the Railways Act, 1989 and treating the appellant’s siding as private infrastructure not used for public carriage of passengers or goods.
