2023 (9) TMI 811 - CESTAT KOLKATA

Exemption from Service Tax - services of construction and maintenance of railways - applicability of N/N. 25/2012-ST dated 20.06.2012 - Manpower service - transportation services - Director’s services - levy of penalty - HELD THAT:- The said activity is exempted from payment of service tax in terms of Notification No.25/2012-ST dated 20.06.2012 and the same has been held exempted by this Tribunal in the case of M/S HARI CONSTRUCTION & ASSOCIATES PRIVATE LIMITED VERSUS COMMISSIONER OF CGST & EXCISE, PATNA II [2023 (9) TMI 454 - CESTAT KOLKATA], wherein this Tribunal has held the appellant is entitled for benefit of Notification No.17/2005-ST dated 07.06.2005 prior to 01.07.2012 and under Notification No.25/2012-ST dated 20.06.2012 for the period post 01.07.2012 - Thus, the activity of construction of railways and maintenance thereof, no service tax is payable by the Appellant No.(1) & (2). Therefore, the demand of service tax on that account is set aside.

Manpower service - HELD THAT:- It has been admitted by the appellant that in reply to the show-cause notice, they paid the service tax thereon. Therefore, the same is not contested.

Transportation services - HELD THAT:- The appellant is not contesting the same.

Director’s services - HELD THAT:- The said demand is not sustainable in the light of the decision of this Tribunal in the case of M/S. MAITHAN ALLOYS LTD. VERSUS CCE & ST, BOLPUR [2019 (4) TMI 1595 - CESTAT KOLKATA], wherein it has been held Demand of service tax on remuneration paid to whole time directors cannot be sustained - the demand of service tax on account of construction of railways and maintenance thereof and the Director’s service, is not sustainable against the Appellant.

Penalty - HELD THAT:- No penalty is imposable on all the appellants.

Appeal disposed off.