Custom, Excise & Service Tax Tribunal
M/S. Pcm Strescon International Pvt. ... vs Siliguri on 7 May, 2024
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE
TRIBUNAL, KOLKATA
EASTERN ZONAL BENCH : KOLKATA
REGIONAL BENCH - COURT NO.1
Service Tax Appeal No.75888 of 2023
(Arising out of Order-in-Appeal No.84/SLG-ST/2023-24 dated 13.06.2023 passed by
Commissioner(Appeals), CGST & CX Appeal Commissionerate, Siliguri.)
M/s. PCM Stresscon International Private Limited
(PCM Tower, 2nd Mile, Sevoke Road, Siliguri, District-Jalpaiguri, West Bengal-
734001.)
...Appellant
VERSUS
Commissioner of CGST & CX, Siliguri Commissinerate
.....Respondent
(CR Building, Haren Mukherjee Road, Kahimpara, Siliguri-734001, Dist: Darjeeling, West Bengal.) APPEARANCE Shri Indranil Banerjee & Shri Subrata Mukherjee, both Advocates for the Appellant (s) Srhi J.Chattopadhyay, Authorized Representative for the Revenue CORAM: HON'BLE SHRI ASHOK JINDAL, MEMBER(JUDICIAL) HON'BLE SHRI K. ANPAZHAKAN, MEMBER(TECHNICAL) FINAL ORDER NO. 75873/2024 DATE OF HEARING : 07.05.2024 DATE OF DECISION : 07.05.2024 Per : ASHOK JINDAL :
The appellant is in appeal against the impugned order demanding service tax for their activity of providing services to the Railways.
2. The appellants were awarded contract agreement dated 01.04.2004 with Northern Frontier Railway (Construction Organization) for construction of new rail lines and conversion of M.G. Lines to B.G. Lines by using Mobile Butt Welding Plant. Northern Frontier Railway by a Certificate dated 25.04.2006 and Certificate dated 29.12.2007 2 Service Tax Appeal No.75888 of 2023 certified that the appellant constructed new railway lines/ gauge conversion of MG Lines to BG Lines, an extension work of North Frontier Railway. The appellant was not paying service tax on their activity claiming the benefit of Serial No.14 of Notification No.25/2012- ST dated 20.06.2012.
3. An investigation was conducted and it was found that the appellant is not entitled to avail the benefit of the said Notification for their activity, therefore, the proceedings were initiated against the appellant by issuance of the show cause notice and both the authorities below have denied the benefit of the said exemption Notification relying on the decision of this Tribunal in the case of PCM Cement Concrete Pvt.Ltd. vs. Commissioner of Central Excise & Service Tax, Siliguri vide Final Order No.FO/77295-77296/2017 dated 30.08.2017 on the ground that the said activity does not fall under Sl.No.14 of Notification No.25/2012-ST dated 20.06.l2012. Against the said order, the appellant is before us.
4. The Ld.Counsel for the appellant submits that the facts of this case are different from the fact in the case of PCM Cement Concrete Pvt.Ltd. (supra) as in that case the services rendered by the appellant were services of welding, drilling, joining of rails and rail panels and other ancillary works including ultrasonic testing of welded joints to the railways. For that activity, this Tribunal came to the conclusion by holding that it does not fall under the category of original work which means either it be a new construction or it should be additions, alterations to abandoned or damaged structures on land that are acquired to make them workable or erection, commissioning or installations of plant, machinery or equipment or structures, whether pre-fabricated or otherwise. Therefore, benefit of the said Notification was denied. But in this case, the Railways itself has certified that it is a new work, therefore, it covers under original work. Therefore, it is prayed that the impugned order be set aside.
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5. On the other hand, the Ld.AR for the department heavily relied on the decision of this Tribunal in the case of PCM Cement Concrete Pvt.Ltd. (supra).
6. Heard the parties, considered the submissions.
7. We find that to avail the benefit of exemption Notification, the Notification provides that -
"14. Services by way of construction, erection, commissioning, or installation of original works pertaining to, -
(a) [***] railways, including monorail or metro;
(b) a single residential unit otherwise than as a part of a residential complex;
(c) low-cost houses up to a carpet area of 60 square metres per house in a housing project 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;
(d) post-harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or
(e) mechanized food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages;
8. For valuation, explanation to Rule 2A(ii) of the Service Tax (Determination of Value) Rules, 2006 is -
Explanation 1. - For the purposes of this rule, -
(a) "original works" means -
(i) All new constructions;
which says that original work means all new constructions. The appellant has provided the certificate issued by the Railways certifying that the activity undertaken by the appellant are new railway lines. For the east of reference, the Certificate issued by the Railways are extracted hereinbelow:-
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9. On going through the evidence provided by the appellant, certifies that the appellant was engaged in the construction of new railway lines, therefore, we hold that the appellant is covered under Serial 14 of Notification No.25/2012-ST dated 20.06.2012.
10. In that view, we find that the appellant is entitled for the exemption and not required to pay any service tax on the services 6 Service Tax Appeal No.75888 of 2023 provided by them in this case and no service tax is payable by the appellant, further, the penalty is also not imposable. Therefore, the impugned order is set aside and the appeal is allowed with consequential relief, if any.
(Dictated and pronounced in the open Court.) Sd/ (ASHOK JINDAL) MEMBER (JUDICIAL) Sd/ (K. ANPAZHAKAN) MEMBER (TECHNICAL) sm