Railway original works exemption required fresh verification before service tax liability could be confirmed.

Service tax demand based on Form 26AS could not be conclusively sustained without verifying whether the appellant's activities fell within the exemption for original works pertaining to railways under Notification No. 25/2012-Service Tax. The work orders showed construction-related tasks such as drains and painting, but the record did not clearly establish that the services were rendered in relation to railways. As the main contractor's work order was necessary to determine the true nature of the activity and exemption eligibility, the matter was remanded for fresh verification and reconsideration of the exemption claim.

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Issues: Whether the demand of service tax raised on the basis of Form 26AS could be sustained without verifying whether the appellant's work fell within the exemption for original works pertaining to railways under the relevant exemption notification.

Analysis: The appellant's work orders indicated execution of construction-related activities such as side drains, catch water drains and painting work, but the record did not clearly establish that the services were rendered in relation to railways. Since the exemption under Serial No. 14 of Notification No. 25/2012-Service Tax applies to services by way of construction, erection, commissioning or installation of original works pertaining to railways, the work order issued to the main contractor was necessary to verify the true nature of the activity and its eligibility for exemption. The existing material was found insufficient for a conclusive finding on tax liability.

Conclusion: The matter was remanded to the Commissioner (Appeals) for fresh verification of the main contractor's work orders and reconsideration of the exemption claim; no final decision on the service tax liability was recorded.

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