CESTAT: Coronation Park a Historical Site; DDA Works Eligible for Service Tax Exemption, Demand Set Aside

April 1, 2026 : The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has held that Coronation Park in Delhi qualifies as a historical site of national importance, making construction and development activities carried out there eligible for exemption under Notification No. 25/2012-ST. The Tribunal allowed the appeal filed by Ajab Singh & Co. and dismissed the Revenue’s cross appeal.

The ruling was delivered by a Bench comprising Binu Tamta and Hemambika R. Priya while adjudicating cross appeals arising from an Order-in-Original dated 24.07.2015 passed by the Commissioner, Rohtak.

The appellant, M/s Ajab Singh & Co., a contractor engaged by the Delhi Development Authority (DDA), had undertaken a range of infrastructure works including construction of roads, drains, boundary walls, residential complexes, parking facilities, and development of Coronation Park and other locations. A show cause notice was issued proposing a demand exceeding ₹1.10 crore under “Construction of Residential Complex Service” for the financial year 2011–12. During adjudication, a substantial portion of the demand was dropped, but ₹9.59 lakh was confirmed under “Works Contract Service.”

The Tribunal accepted the appellant’s contention that the adjudicating authority had travelled beyond the scope of the show cause notice by confirming the demand under a different taxable category. It reiterated that a show cause notice forms the foundation of the case and that confirming a demand under a different classification violates principles of natural justice, as the assessee is denied the opportunity to defend the altered charge. On this ground alone, the demand was held to be unsustainable and was set aside.

In the Revenue’s cross appeal, the Department argued that construction of facilities such as an International Centre and Restaurant at Coronation Park was commercial in nature and therefore not eligible for exemption. The Tribunal rejected this argument after examining the historical significance of Coronation Park, noting its association with the Delhi Durbars, the foundation of New Delhi, and the presence of historically significant structures such as the Coronation Memorial and the statue of King George V. It held that the park is a site of national importance and qualifies for exemption under Entry 12 of Notification No. 25/2012-ST.

The Tribunal further observed that ancillary facilities such as parking do not acquire a commercial character merely because nominal charges are levied. It emphasized that the test of commercial activity is the presence of a profit motive, which was absent in the present case as the facilities were developed for public use and welfare. Accordingly, such works were also held to be covered by the exemption.

In conclusion, the Tribunal allowed the appeal filed by Ajab Singh & Co. by setting aside the service tax demand of ₹9.59 lakh and dismissed the cross appeal filed by the Revenue.

Case Title: M/s Ajab Singh & Co. v. Principal Commissioner of Service Tax, Delhi I
Appeal Nos.: ST/54194/2015 & ST/54378/2015
Decision Date: 01.04.2026