Railway siding construction exemption applies to private parties under the service tax notification.

Construction, erection, commissioning or installation of original works pertaining to railways fell within the exemption in Notification No. 25/2012-ST, because the term "railways" was not confined to Government railways. Reading the notification with the Railways Act, 1989 definition, which includes lines, sidings and yards used in connection with a railway, railway siding construction for private parties was also covered. The distinction sought between Government and non-Government railways did not limit the exemption, and Section 94 of the Railways Act was treated as irrelevant to the issue. Accordingly, the proposed activity was held exempt under entry 14(a).

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Issues: Whether construction of railway siding for private parties is exempt under Notification No. 25/2012-ST dated 20.06.2012.

Analysis: The exemption under entry 14(a) applies to services by way of construction, erection, commissioning or installation of original works pertaining to railways. The notification uses the expression "railways" and does not restrict the benefit to Government railways alone. The Railways Act, 1989 defines railway to include lines, sidings and yards used for the purposes of or in connection with a railway. Read in that context, the notification covers railway sidings even when used for private parties, and the distinction urged between Government and non-Government railways does not limit the exemption. Section 94 of the Railways Act, 1989 was found irrelevant to the issue.

Conclusion: Construction of railway siding for private parties is exempt under Notification No. 25/2012-ST dated 20.06.2012, as amended by entry 14(a).

Final Conclusion: The exemption entry was held applicable to railway siding construction for private parties, and the applicant's proposed activity was covered by the notified exemption.

Ratio Decidendi: Where an exemption notification grants relief to "railways" without limiting it to Government railways, construction of railway sidings used in connection with railways falls within the exemption even if undertaken for private parties.

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