Tribunal Rules Railway and Road Construction Services Exempt from Service Tax; 2007-08 Claim Barred by Limitation.

The Tribunal set aside the impugned order, allowing the appellant's appeal. It held that services rendered for railway and road construction were exempt from Service Tax during the relevant period. The demand under 'Commercial or Industrial Construction Service' was unsustainable, and the claim for 2007-08 was barred by limitation due to no suppression with intent to evade tax.

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Issues involved: Appeal against Order-in-Appeal upholding demands confirmed in Order-in-Original for Service Tax on work orders executed for piping work under railway line and boulder pitching for road construction.

Summary:
The present appeal was filed against the Order-in-Appeal upholding demands confirmed in the Order-in-Original for Service Tax on work orders executed by the appellant for piping work under railway line and boulder pitching for road construction. The appellant contended that the services rendered in respect of railways and road construction are exempt from Service Tax. The Assistant Commissioner confirmed the demand, which was upheld by the Commissioner (Appeals). The appellant argued that the services are rightly classifiable under 'works contract service' and that the demand is barred by limitation. The Tribunal observed that services rendered to railways and road construction were exempt from Service Tax during the relevant period. The demand confirmed under 'Commercial or Industrial Construction Service' was set aside as it was not sustainable. The Tribunal also held that the demand for the period 2007-08 was barred by limitation due to no suppression with intention to evade tax. Consequently, the impugned order was set aside, and the appeal filed by the appellant was allowed.

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