TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1274
X X X X Extracts X X X X
X X X X Extracts X X X X
....rmation received from the Income Tax Department revealed that as per Form-26AS, the appellant has received the amount of Rs. 11,73,69,466/- and Rs.14,52,34,196/-(total of Rs. 26,26,03662/-), during the Financial Years 2015-16 and 2016-17 respectively, from various service recipients on which TDS was deducted under Section 194C of the Income Tax Act, 1961. Thus, the officers of Service Tax department were of the view that the appellant had rendered 'Works Contract Service' liable to Service Tax in terms of Section 65B(44) and 65B(54) of the Finance Act, 1994. Thus, the Department alleged that the appellant was liable to pay Service Tax amounting to Rs.3,88,03,702/- (including Cess) on the payments received by them during the above said periods. 2.2. On the basis of the above said objection, a Show Cause Notice dated 28.04.2021 was issued to the appellant, demanding Service Tax amounting to Rs.3,88,03,702/- (including Cess) for the Financial Years 2015-16 and 2016-17, by invoking the extended period of limitation. 2.3. The said Notice was adjudicated whereafter the demand of Service Tax amounting to Rs. 1,45,54,321/- (including Cess) has been confirmed in the impugned Order....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t is described in any departmental circular or internal communication; therefore, once the nature of work is examined and found to be covered within the ambit of "original work" as per the Service Tax law, the benefit of exemption cannot be denied. 3.2. In view of these submissions, the appellant has prayed for setting aside the demand of Service Tax, along with interest and penalty, confirmed in the impugned order and allowing the appeal filed by them. 4. The Ld. Authorized Representative of the Revenue reiterated the findings in the impugned order. 5. Heard both sides and perused the appeal records. 6. We find that the appellant is mainly rendering the service laying of track for North Eastern Frontier Railways. There is no dispute that the service rendered by the appellant falls within the ambit of Section 65B(54) of the Finance Act, 1994, which defines "Works Contract" service. As per the said definition, 'works contract service' includes repair, maintenance, renovation, alteration of any movable or immovable property. The appellant claims that the services rendered by them are 'Original Works' to Railways, which are specifically exempted vide Service Tax Me....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect approved by competent authority empowered under the 'Scheme of Affordable Housing in Partnership' framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; * post- harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or ..." (Emphasis supplied) 6.4. The definition of original works as per Notification No. 25/2012-ST dated 20.06.2012, as amended, reads as under: - "For the purpose of this notification, unless the context otherwise requires: (y) "original works" means has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006;" 6.4.1. Explanation (1)(a) to the Rule 2A of Service tax (Determination of Value) Rules, 2006, dated 20.6.2012, defines "Original Works" as: "(i) all new constructions; (ii) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise'" 6.5. From the above definition of 'Original Works', we find that all types of additions and a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mit expansion contraction of the adjoining breathing lengths due to temperature variations} with all fittings and sleeper under the jurisdiction of Assistant Divisional Manager of Kishanganj (Total=29 sets). We observe that the above contract of glued rail joints and switch expansion joints involves replacement and renewal of rail joints installed on land and are in nature of new constructions. Thus the above contract is clearly covered under the definition of "Original Work". 3. Work Order No. W/362/15/BG TSR (P)/NJP-JPE/L-Cell (ST Amount involved : 23,80,151/- This Contract is related to: (A) Installation of broad gauge (Railway with track gauge) through fitting renewal of the existing Pre Stressed Concrete sleeper laid under 60Kg rail between New Jalpaiguri to jalpaiguri road. It is observed that the above work is in nature of renewal (i.e. new construction) of entire lot of sleeper over a particular stretch which should be done when the percentage of unserviceable sleepers is equal to 30% on trunk routes/main lines and 35% on branch lines to make the same more workable. Considering the above, we find that the above contract stands covered under the definition of "Original....
X X X X Extracts X X X X
X X X X Extracts X X X X
....597/-) The Contract is related to: Permanent way and ancillary work required for completing the balance work in connection with the opening of the section from New Mal Junction to Changrabandha. The above work involves New Gauge Conversion Work for changing of one railway track gauge to another. Thus, the above contract is covered under the definition of "Original Work". 2. A) Work Order No. W/362/15/TTR CMS Crossing=90 Sets/L-cell (ST Amount involved : 20,63,161/- B) Work Order No. W/362/14/TRR(P) & TTR (P)/L-Cell (ST Amount involved : 3,79,972/- C) Work Order No. W/362/15/BG TSR/NJP/L- cell (ST Amount involved : 21,03,353/- These Contracts are related to: Through rail renewal of the existing 52 Kg/72 UTS rail on Pre stressed concrete PSC/6 sleeper by 60Kg/90UTS rail in DN Line. The above work includes work through Rail Renewal which is carried out after the track gets consolidated by three rounds of through packing and also on account of passage of trains and is an alteration to existing structure on land. Thus, the above contract is covered under the definition of "Original Work". 3. Work Order No. W/362/15/NJP/Cess/L-Cell (ST Amount involved : 12,76,346/-) The Cont....