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2019 (11) TMI 539 - AT - Service TaxExemption from service tax - Works Contract Services or Commercial or Industrial Construction Services? - construction of railway lines for private parties and construction of private roads - case of the revenue is that both CICS and WCS exclude railways or roads - Demand of interest and penalty as well - HELD THAT:- In respect of one of the appeals herein viz., M/S UNITED RAIL ROAD CONSULTANTS PVT LTD VERSUS COMMISSIONER OF CUSTOMS CENTRAL EXCISE & SERVICE TAX, HYDERABAD-III [2019 (6) TMI 1409 - CESTAT HYDERABAD] has decided that the charging section of works contract under section 65(105)(zzzza) of the Finance Act, 1994 excludes railways. Since it does not qualify the term by saying “railways for public carriage or railways by the Government”, it was held that the term “railways” includes any form of railways in the absence of any stipulation to the contrary in the charging section - the charging section under CICS is also identically worded and find no reason to take a different view. Demand of interest and penalties - HELD THAT:- In both CICS and WCS the exclusions from railways, roads, dams, etc., extends to all forms of railways, roads, dams, etc., in the absence of any word restricting them to public railways, public roads, public dams etc. Consequently, demands raised in all these appeals must fail. Since the demands are themselves not sustainable, there is no question of any interest or penalty being imposed for non-payment of service tax. Appeal allowed - decided in favor of appellant.
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