2009-10 Union Budget but the then Railway Minister Mamata Banerjee had protested the move.
Freight services had also witnessed a hike of 20 per cent to 30 per cent this year in March before the budget.
Insiders in Railway Ministry say the imposition of service tax is a pointer of the reformative measures that the government plans to initiate to strengthen the financial
health of the national transporter and revitalise it.
The ministry has now come to Congress after 16 years.