Order Date: 12 August 2022

Facts-

• The Appellant, M/s Krishna Construction Co. is engaged in Commercial or Industrial construction and provides services to Railways.
• The Appellant provided the services to Western Railway, which is a part of Ministry of Railway i.e. "Government". As per the Appellant, Service tax exemptions are also available to the Services provided by and to the Indian Railways. 
• A Show Cause Notice was issued denying the exemption and demanding total Service tax basis data shared by Income tax authorities. 
• The Revenue submitted that the activities are not covered under the exemption Notification No. 25/2012-ST. The supply of manpower for cleaning Railway station and managing unmanned Railway crossing by “Gate Mitra” was only cleaning service and the activities are not covered supply of manpower service, which are not eligible for exemption.
• Aggrieved, the Appellant filed this appeal before the Tribunal.

Issue-

• Whether the demand of Service tax as confirmed with Interest and penalties by the Adjudicating Authority is sustainable or otherwise?

Order-

• The Tribunal observed that the demand of Services tax cannot be raised only on the basis of any such assessment made by the Income Tax Authorities. Information or data or documents relied upon losses its evidentiary value in absence of any independent inquiry which was mandatorily required to have been conducted by concerned officers of the Central Excise department , before issuance of the Show Cause Notice. Therefore, demand of Service tax confirmed with interest and Penalty by the adjudicating authority also deserves to be set aside on this ground.
• "W R Contract income": Held that activities performed by Appellant under contract was to maintain unmanned Railway crossings primarily for safety. Therefore, activity by Appellant is not supply of manpower as such, but, it is maintenance of unmanned railway crossings, which is covered under the ambit of Maintenance of the unmanned Railway crossings. Therefore, Service Tax could not have been confirmed as maintenance service is exempted as per serial No.12 of Notification NO.25/2012-ST dated 20/06/2012.
• “WR P Way maintenance Labour”: Held that the activity is services of Maintenance of the Railway Tracks, beyond doubt. Therefore, activity by Appellant is maintenance of railway tracks, which is covered under the ambit of Maintenance of Railway tracks. Therefore, Service Tax could not have been confirmed as this service is Maintenance of Railway Tracks only and it is undoubtedly exempted under the serial No. 12 of the Notification NO.25/2012-ST dated 20/06/2012. 
• “Cleaning of Station”: Held that the activity of Appellant of picking rags etc is not cleaning service but it is covered under Maintenance of Railway  Station. Therefore, the said activity will merit classification under maintenance of the Railway Station service, in terms of Section 65A of Finance Act 1994 and Budget Circular No.334/4/06-TRU dt. 28-02-2006 which is eligible for exemption under the Sr. No. 12 of Notification No. 25/2012-ST.
• "W R Grinding FB welding": Held that Grinding Flash Butt (Electric Resistance) Welding activity on the Rail Tracks of Western Railway under which Appellant have carried out work during F.Y. 2014-15 is nothing but Repairs and Maintenance of Railway Tracks. Thus, contract was for work for maintenance, repairs, which is exempted under Sr No. 12 of Notification No. 25/2012-ST from payment of Service Tax on value of amount paid by Railways to Appellant.
• Therefore, services of Appellant were to Railways (Western), for Repairs and Maintenance is eligible for the exemption.
•  Accordingly, the impugned Order was set aside.