2026-VIL-229-CESTAT-DEL-ST
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SERVICE TAX CESTAT Cases

Service Tax - Exemption from Service Tax for Construction of Roads – Denial of exemption on the ground that the roads in question constructed by the appellant were internal roads which were meant for the residents of the complex and their guests - Whether the construction of internal roads by the appellant is eligible for exemption from service tax under Notification No.25/2012-ST dated June 20, 2012 – HELD - The exemption under the notification is available for construction of a road, bridge, tunnel, or terminal for road transportation for use by general public. However, the Appellate Authority had found that the roads in question constructed by the appellant were internal roads which were meant for the residents of the complex and their guests, and not for use by the general public. The appellant had not produced any document or evidence to show that these internal roads were for general public use, which is the basic requirement for availing the exemption notification - In the case of Warsi Buildcon, it was held that the exemption on payment of service tax in respect of services relating to the construction of roads was limited only to those roads which were meant to be used by the general public, and not for private use by the buyers of the builders or residents of the township. However, the present case is distinguishable from the Warsi Buildcon case, as the Work Order in the present case has been issued by the Jaipur Development Authority, which is a Government Authority. Since the exemption has been sought under Entry No.13(a) and 29(h), the relevant issue to be decided is whether the construction of road is for use by general public - The impugned order is set aside and the matter is remanded to the Original Authority to decide the issue of eligibility for exemption from service tax afresh, considering the nature of the Work Order and the evidence provided by the appellant to establish that the construction of roads was for use by the general public - The appeal is allowed by way of remand
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