Railway exemption covers private-use infrastructure where notification imposes no public carriage restriction, tax demand fails.

Exemption for railways applied to works contract activity involving railway tracks and allied structures, because the notification did not confine relief to railways used for public carriage. The Tribunal followed binding precedent that no artificial distinction can be drawn between public and private railways where the exemption contains no such limitation, and held that exclusive use by a corporation did not take the activity outside the exemption. The Service Tax demand for the relevant period was therefore unsustainable, and the impugned order was set aside.

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Issues: Whether the appellant's construction of railway infrastructure for exclusive use of a corporation was liable to Service Tax or fell within the exemption available to railways under the relevant notifications.

Analysis: The dispute concerned the taxability of works contract activity relating to railway tracks and allied structures. The Tribunal noted that the same question had already been decided in earlier binding precedent, where it was held that the exemption for railways is not confined to railways used for public carriage and that no distinction can be artificially drawn between public and private railways when the notification does not impose such a limitation. The relevant exemption notifications were held applicable for the disputed period, and the earlier view had already been affirmed.

Conclusion: The appellant was entitled to the benefit of the exemption notifications and the Service Tax demand was not sustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

Ratio Decidendi: Where an exemption for railways contains no qualifying restriction, it applies to railways irrespective of ownership or whether the railway is used for public carriage or exclusive private use.

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