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2018 (12) TMI 255 - AT - Service Tax


Issues:
1. Challenge against Order-in-Original regarding service tax demand for the period 2009-10 to 2012-13.
2. Grounds of appeal related to service rendered to RBI, taxability of cleaning services to SGPGI, and cleaning services to factory hospitals.

Issue 1: Challenge against Order-in-Original regarding service tax demand for the period 2009-10 to 2012-13:

The appeal was directed against Order-in-Original No. LKO/EXCUS/000/COM/ST/082/2015-16 dated 29.01.2016 passed by the Commissioner, Central Excise & Service Tax, Lucknow. The appellant, a service provider, received a show cause notice for a demand of service tax amounting to ?55,40,698 for the period from 2009-10 to 2012-13. The notice alleged discrepancies in the payment of service tax concerning various services provided by the appellant. The Original Authority confirmed the demand with interest and imposed an equal penalty, leading to the appellant's appeal before the Tribunal.

Issue 2: Grounds of appeal related to service rendered to RBI, taxability of cleaning services to SGPGI, and cleaning services to factory hospitals:

The appellant contested the demand on several grounds. Firstly, regarding services rendered to RBI, the appellant argued that services provided to RBI were exempt from service tax as per Notification number 22/2006. Secondly, concerning cleaning services to SGPGI, the appellant contended that SGPGI being a State University established by the State Government, the cleaning services provided were non-commercial and thus not liable for service tax. Lastly, the appellant claimed that cleaning services provided to hospitals of SAIL & RDSO, maintained in compliance with the Factories Act, were also non-commercial and fell under the exclusion category of taxable cleaning services.

The Tribunal, after hearing both parties and examining the record, found discrepancies and contradictions in the show cause notice. It noted that the Revenue did not scrutinize the agreements and invoices related to the services provided by the appellant. The Tribunal emphasized the importance of examining the exact nature of the appellant's activities to determine tax liability accurately. Additionally, it highlighted that some services provided to RBI were exempted from service tax. The Tribunal concluded that the lack of scrutiny of receipts and agreements rendered the show cause notice unsustainable in law, leading to the proceedings being vitiated. Consequently, the impugned order was set aside, and the appeal was allowed.

*(Pronounced in Court on 20.11.2018)*

 

 

 

 

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