KRISHNA VEER YADAV vs ARSS SIPS (JV)

GSTAT
State Bench Agra
Division Bench Court No. Court I
APL/194/AGR/2026
KRISHNA VEER YADAV
.............Appellant
Versus
ARSS SIPS (JV), MANAGER, 5488 GALI NO 72 RIAGAR PURA NEW DELHI
DLCEN 110005 .............Respondent
Quorum
Hon’ble Ajeet Singh, Member(Judicial)
Hon’ble Vivek Kumar, Member (Technical)
Counsel for Appellant
SH. MUKESH KUMAR, AUTHORIZED
REPRESENTATIVE
Counsel for Respondent
SH. KAPIL ARORA, CA
Form GST APL-04A
[See rules 113(1) & 115]
Summary of the order and demand after issue of order by the GST Appellate Tribunal
whether remand order : No
Order reference no. : ZA090401026000217H Date of order : 30/10/2026
1. GSTIN/Temporary ID/UIN - 09AAEAA3620K1ZV
Appeal Case Reference no. -
2. Date - 27/04/2026
APL/194/AGR/2026
3. Name of the appellant - KRISHNA VEER YADAV , [email protected] , 9654750076
Name of the respondant -
4.
1. ARSS SIPS (JV) , [email protected] , 9268564605
5. Order appealed against - AD090925149253R
(5.1) Order Type - Demand Order
ZD090126106420W Date - 16/01/2026
(5.2) Ref Number -
6. Personal Hearing - 30/10/2026 06/10/2026 18/08/2026 03/08/2026

7. Status of Order under Appeal - Reject - Order under Appeal is annulled
Order in brief - This second appeal is sound on the factual and legal aspects and deserves to be
allowed. Accordingly, order in appeal dated- 16.01.2026, passed by first appellate authority is set
aside and order in original, dated28.06.2025, passed by adjudicating officer is restored.
8.
Summary of Order
If demand order then whether demand quantified: No
9.
For Other orders and Demand orders which are not quantified:
10.
Issues
as
raised
by
proper
officer
Order
by
GST
Appellat
Tribunal
Issues as determined by Appellate/Revisional authority
The Works executed by the appellant with Indian Railways is in the capacity of a government
entity under the GST Act. The appellant has performed work related to rock/boulder blasting,
signal works, and MSE items. After constructing foundations at various locations, the work of
erecting iron structures was done by securing them with nuts and bolts. Subsequently, after laying
electric wires through overhead [lines], signal-related work was completed. Thus, the works
completed under the contract obtained from the Railway Department are permanently attached to
immovable property, and both goods and services are involved in the work. Therefore, these
works fall under the definition of a Works Contract according to Section 2(11). In this manner,
railway signaling wiring and related electrical/supporting installation work is legally considered a
Works Contract service. The projects executed by the appellant for Indian Railways are
government projects. Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, as amended
by Notification No. 20/2017 Central Tax (Rate) dated 22.08.2017, provides that the GST rate for
relevant works contract services provided to railway entities for the respective year is 12%. This
benefit of the concessional rate also extends to contractors engaged in railway-related works. The
contract executed by the appellant with Indian Railways, being a government department, has
been performed accordingly. Therefore, in light of the facts discussed above, the tax liability of
the appellant should be 12% instead of 18%.
Classification
dispute
AGRA
BENCH
Place :AGRA
Signature
Date : 30.10.2026
AGRA Sandeep Yadav
Designation : Stenographer/Law researcher
Jurisdiction :Agra

ORDER
Per. Ajeet Singh (Judicial Member)
Commissioner State Tax (through-Krishna Veer Yadav, Deputy Commissioner)
Vs
ARSS SIPS, New Delhi.
APL/194/AGR/2026
th
(Passed on 30 day of October, 2026)
1. Being aggrieved by the order dated- 16.01.2026, passed by first appellate authority in first appeal no.
AD090925149253R/2025, whereby by allowing the respondent’s first appeal order in original passed
by adjudicating officer on 28.06.2025, has been modified by accepting tax liability of Rs. 43,248/- only
on respondent while the main demand of Rs. 72,82,446/- has been quashed, department of UP state tax
has preferred the present appeal u/s 112 of Central Goods and Services, Act/Uttar Pradesh Goods and
Services Tax, Act, 2017 (for short CGST/UPGST, Act) on the direction of commissioner. For
convenience hereinafter in the order appellant and respondent will be addressed as department and
taxpayer respectively.
2. Before narrating the facts of the case it would be beneficial to note that taxpayer did not show his
income of Rs. 75,100/- as taxable income, which was detected in audit and accordingly in addition to
main demand of tax from construction services, Rs. 43,248/- were imposed as goods and services tax
from other income, on taxpayer. To that extent learned first appellate authority has confirmed the order
in original and no appeal or memorandum of cross objection has been filed by respondent taxpayer
therefore, findings recorded by learned first appellate authority to that extent are not subjected to
appreciation by this tribunal and discussion of this tribunal now would be in respect of tax on
construction services rendered by taxpayer to Indian Railway a government entity.
3. In order to disposal of this second appeal filed u/s 112 of CGST/UPGST, Act facts of the case in brief
are that taxpayer is a registered Joint Venture having GSTIN 09AAEAA3620K1ZV and provides
construction and other services. Main business place of taxpayer is at house no. A-17 situated at eldeco
county, Bijalui, jhasni. Taxpayer provides construction services regarding earthwork in
embankment/cutting blanketing side, drains, retaining/toe wall, construction of minor bridges and
removal of infringement of signals, cables equipment with other aligned work, construction of major
bridges and earthwork in approaches including protection and other ancillary work to North Central
Railway in the year 2019-20. For works performed by him to railway he submitted several tax invoices
for a total amount of Rs. 12,13,74,088/- on which he paid GST at the rate of 12% through his GSTR-1
and GSTR-3B.
4. On verification learned proper officer has issued a SCN u/s 74 of CGST/UPGST, Act to taxpayer that
he has short paid tax by willful misstatement as service provided by him comes under head of general

construction services SAC no. 995423 and 995424 those are taxable at the rate of 18% GST but he has
paid the tax of 12% GST. In such SCN demand of deficit GST was assessed as 72,82,446/- along with
applicable interest and penalty. Learned proper officer issued SCN to taxpayer which was replied
unsatisfactorily and thus, learned adjudicating officer passed the order u/s 74(9) of CGST/SGCT, Act.
5. Feeling aggrieved by the order passed by proper officer as aforesaid, taxpayer preferred first appeal
which was allowed by first appellate authority and to the extent of demand of Rs. 72,82,446/- raised in
pursuance of order in original, order was set aside, hence this second appeal before this tribunal by
state tax department, through its official Sh. Krishna Veer Yadav, Dy. Commissioner.
6. We have heard the learned authorized representatives of respective parties and perused the record
carefully. The question for determination may be stated thus-
Whether general construction services provided by taxpayer to Indian Railway, comes under the
head of “Composite Supply of Works Contract to Railways and are covered by entry at sr. no. 3(v)(a) of
notification no. 11/2017 as amended by notification no. 20/2017 Central Tax (Rate) attracting 12% tax .?

FINDINGS WITH REASON
7. In this second appeal filed by department of state tax, U.P u/s 112 of CGST/UPGST, Act, before the
appellate tribunal the core issue revolves around the correct classification and applicable GST rate for
general construction services provided for railway infrastructure product by the tax payer. Learned
adjudicating officer has held that services provided by taxpayer are not covered in the head of
construction of buildings residential or commercial but same are covered with “general construction
services” which should be assessed under GST slab of 18% not in slab of 12%. In first appeal learned
first appellate authority has held that services provided by taxpayer to Indian railway which is a
government entity comes under the construction services in relation to immovable property and thus
being work Contract services to Railway and are taxable at the rate of 12%.
8. Question before this appellate tribunal is only as to whether services provided by taxpayer to Indian
Railway such as earthwork in embankment/cutting blanketing side, drains, retaining/toe wall,
construction of minor bridges and removal of infringement of signals, cables equipment with other
aligned work, construction of major bridges and earthwork in approaches including protection and
other ancillary work are work contract services and thus are covered by notification no 11/2017 as
amended by notification no.20/2017 or not.
9. Thus, work contract description indisputedly includes bridges, toe walls, major/minor construction,
signal relocation and earthwork. Unless the taxpayer can mathematically demonstrate with structural
proofs and billing breakups that construction services provided to Railways are only in relation to
construction /repairing of immovable property, the contract can not qualify for the 12% concessional
rate under serial no. 03(V)/(a) of notification no. 11/2017-CT(Rate) as amended by notification no,
20/2017 CT(Rate) dated 22-08-2017.
10. Learned authorized representative appeared for department has also drawn our attention to the tax
invoices submitted by taxpayer to Indian Railway regarding services rendered by him. In such invoices
as noted in the facts it is described the service as “general construction services” which are taxable at
the rate of 18% until unless taxpayer would not show these services are work contract services. As per

SAC (Services Accounting Code) 9954, all construction and works contract services fall under the
heading of 9954, however, simply grouping everything under “construction of immovable property”
ignores the specific sub entries under notification no. 11/2017 central tax dated June 28, 2017 (as
amended). Further, taxability of works contract services provided to central/state governments local
authorities, government entities and government undertakings like Indian Railways is strictly govern
by notification state above. As per serial no. 03(V) of the said notification any composite supply of
works contracts other than those specifically carved out attracts a standard rate of 18% (09% CGTS+
09% SGST). As stated earlier, as per serial no. 03(V) of the notification prescribes a concessional rate
of 12% (06% CGST+ 06% SGTS) is only for a composite supply of works contract provided to
railway, in this matter taxpayer has not shown supply of services provided by him involves
construction services in relation to immovable property and are composite supply of works contract.
Therefore, in the present matter services provided by the taxpayer do not qualify for 12% rate under Sr.
No. 3(V)(a) and defaults to the standard 18% rate.
11. In this way, findings recorded by first appellate authority is that all railway construction services fall
under “work contract services at the rate of 12% GST” is legally untenable, perverse to record and thus
liable to be overturned.
12. Consequently, on the discussion above, we are of the considered opinion that this second appeal is
sound on the factual and legal aspects and deserves to be allowed. Accordingly, order in appeal dated-
16.01.2026, passed by first appellate authority is set aside and order in original, dated28.06.2025,
passed by adjudicating officer is restored as taxpayer has short paid tax by charging 12% GST instead
of applicable 18% standard rates on general construction services to Indian Railway, a central
government undertaking.
13. There is no pending interim application in the appeal.
14. Order is pronounced in open court on this day of 30th of October, 2026.
15. Copy of order be communicated to all concerned, as per rules.
Ajeet
Singh
Digitally signed
by Ajeet Singh
Date: 2026.10.30
16:40:19 +05'30'
(Ajeet Singh)
Vivek
Kumar
Digitally signed
by Vivek Kumar
Date: 2026.10.30
16:28:06 +05'30'
(Vivek Kumar)
Dated: 30.10.2026