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2023 (12) TMI 782 - CESTAT NEW DELHIRefund of Service tax - Commissioner (Appeals) committed an error while interpreting Entry No. 14 of the exemption notification - HELD THAT:- A perusal of Entry No. 14 of the exemption notification leaves no manner of doubt that services by way of construction, erectioning, commissioning or installation of original works pertaining to Metro are exempted. Thus, even if the appellant was not providing such services directly to Delhi Metro, but to its foreign entity, it would not mean that the appellant had not provided services to Delhi Metro. The Commissioner (Appeals) also proceeded to hold that machining of rails cannot be treated as providing service by way of commissioning or installation of original works pertaining to metro. It is not possible to accept this finding. The Project Office of V.V.S. had imported rail, rail fittings, crossing and other material which were supplied to the appellant for machining and grinding after which they were sent to the Delhi Metro for laying of railway tracks. Such services would clearly fall under commissioning or installation of original works. Commissioning would means to bring something newly produced such as a factory or machine into working condition. This is what was carried out by the appellant. The work carried out by the appellant was also necessary without which the railway tracks could not have been supplied as per the technical specifications. The appellant was clearly exempted from payment of service tax under Entry No. 14 of the exemption notification. The adjudicating authority was justified in granting refund - Appeal allowed.
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