CESTAT held that the appeal is partly allowed. Service tax...

CESTAT held that the appeal is partly allowed. Service tax liability on civil construction and site-levelling services rendered to the national electric transmission utility was found exempt under the relevant notifications; however, when that exemption ceased the appellant voluntarily discharged the tax and interest, negating the need for a showcause notice and attracting no penalty. The Tribunal set aside the confirmed demand in respect of construction/repair of an approach road, observing the project qualified for statutory exemption for roads for public use and rejecting the revenue's challenge to a PSU certificate. The Tribunal also quashed the service tax demand on construction of a railway line, finding the adjudicator's reliance misplaced; appeal disposed.

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