TaxTMI 
TaxTMI 
2026 (7) TMI 236
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....ppeal of the appellant. 2. Briefly the facts of the present case are that the appellant is engaged in rendering the taxable services of 'Consulting Engineering' & sponsorship Services. A show cause cum demand notice dated 11.09.2017 was issued by the Deputy Director, DGCEI to the appellant to show as to why services relating to Railways infrastructure provided by M/s Shyan Takniki Udyog (STU) to Damodar Valley Corp. (DVC), where the appellant is acting as a project management consultant and agent shall not be classified as taxable service. The appellant contested the allegation made in the show cause notice by filing its reply on 06.10.2017 raising the following two issues as under: a. That RITES was merely an agent and power of....
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....tegra and has been settled in series of judgments in favour of the assessee. He further submits that recently this Tribunal in the appellant's own case titled as M/s Rites Ltd. Vs. Commissioner of Central Excise, Goods & Service Tax, Gurgaon-I [2025 SCC Online CESTAT 3991] has settled the legal position by clarifying that service tax is not leviable when it comes to railway projects. The said judgement also clarifies that there is no distinction between railway for private purpose and railway for public purpose in the Finance Act, 1994; and such a distinction cannot be artificially contrived to suit tax administration. He further submits that in the said case, the Tribunal has also clarified that importing provisions from the Railways Act, ....
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.... of Central Excise & ST, Chandigarh, MANU/CJ/0049/2018 4.4 He also submits that the Commissioner (Appeals) has failed to appreciate that the appellant is acting for and on behalf of its client namely, Damodar Valley Corp. (DVC) who has awarded the contract of construction of Railway siding/project to the executing agencies for and on behalf of its principal; as such RITES is the Power of Attorney Holder of DVC and it is the DVC who is the disclosed principal. The learned counsel also refers to Section 226 and 230 of the Indian Contract Act which defines the duty and liability of an agent who is engaged by the disclosed principal to carry out certain works contract. He also submits that it is a settled law that an agent has no liability u....
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.... engaged the service of M/s GVK-ENC to execute the contract. Revenue wants to collect service tax on the services received by the appellants from M/s GVK-ENC under reverse charge mechanism in terms of Section 65B(22) read with Section 66E(b), bolding that the same is not public usage. We find that the appellant's case is covered by the cases relied upon by the appellants. We find that Mumbai Bench of the Tribunal in the Konkan Railway Corporation (supra) held as follows: 9. It is, thus, clear that the proposition of strict construction of intent of exemption notification must also go hand in hand with strict construction of every word/phrase therein. The exemption from tax is available to 'railways', excluding mono rail....