TaxTMI 
TaxTMI 
2026 (1) TMI 1443
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....he Final Order No. 20200/2020 in STA No. 2644/2011, dated 18.02.2020, passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bengaluru [CESTAT]. 3. This Court by order dated 30.01.2023 admitted the appeal to consider the following substantial questions of law; (1) Whether in facts and circumstances of the case whether the tribunal is right in holding that the activities of the assessee Respondent fall within the definition of "Work in relation to Railway". Hence entitled for exemption in terms of Notification No. 17/2005-ST 07/06/2005? (2) Whether the Railway line laid which his incidental to carry out the transactions entered into which are commercial in nature, can be classified as exempt....
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....sessee further contended that such services are exempt from service tax under Notification No. 17/2005. 4.2 The Commissioner of Service Tax, by order dated 26.05.2011, rejected the contention of the assessee, holding that Notification No. 17/2005 exempts works relating to railways meant for public use and does not extend to railways constructed for industrial or commercial purposes. Accordingly, an order confirming the demand was passed. 4.3 Aggrieved by the said order, the assessee preferred an appeal before the CESTAT. The CESTAT, under the impugned order dated 18.02.2020, following the decision of the CESTAT, Mumbai Bench, in Afcons Infrastructure Limited v. Commissioner of Central Excise, Mumbai-II 2015 (38) S.T.R. 194 (Tri.-Mumba....
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.... specific contention of the appellant that the purpose of laying the railway track was purely commercial in nature and, therefore, the assessee is not entitled to claim exemption under the said notification. 6. Sri M. S. Nagaraja, learned counsel appearing for the respondent-assessee, submits that Notification No. 17/2005 is required to be read in its plain and unambiguous terms. It is contended that the notification does not draw any distinction between Government railways and private railways. In the absence of such distinction in the notification, it is impermissible to read into it words or classifications which are not expressly provided. 6.1 Learned counsel further submits that for the subsequent years, similar services rendered....
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....n 65 of the Finance Act, provided to any person by any other person in the course of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams, ports or other ports, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 2. This notification shall come into force on the 16th day of June, 2005." 10. Section 2(31) of Railways Act defines 'railways' as, "railway" means a railway, or any portion of a railway, for the public carriage of passengers or goods, and includes- (a) all lands within the fences or other boundary marks indicating the limits of the land appurtenant to a railway; 11. Section 2(20) of Railways Act defines "Government railw....
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....cult to draw any distinction between Government railways and railways constructed for commercial purposes, or between railways meant for public carriage of passengers or goods and those laid for commercial use. There is no indication in the notification, nor any exception carved out, disqualifying services rendered in relation to railways constructed for commercial purposes from the benefit of exemption. In the absence of any such specific intention expressed in the notification, it is neither permissible nor possible to interpret the same as being confined only to works relating to public railways. 16. The expression "railways" as used in the notification takes within its fold, services rendered in relation to the construction of railwa....