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2015 (8) TMI 504 - AT - Service TaxDemand of service tax - appellant is engaged in providing security services and also other services like cleaning services, services to SEZ units and some non-taxable services - difference in gross value of taxable service as shown in ST-3 returns, as compared to turnover as per Books of Account. - held that:- Other than security services, the appellant also provided services like caretaking services, driving services, loading and unloading services, fire fighting services which are not covered in any category of taxable services. As per certificate of the C.a. produced by the appellant before the court below as well as this Tribunal, the total value of such services is ₹ 40,00,99,350/- for the disputed period. - no specific head of service category has been proposed in the show-cause notice nor confirmed in the impugned order - Thus, the show-cause notice as well as the impugned order are vague. As regards classification, it is settled law that classification of taxable service must be specified in the show-cause notice in order to fasten liability of Service Tax. - appellant is not liable to Service Tax in respect of the non-taxable services, the gross value of which totals ₹ 40,00,09,350/- and accordingly, the demand of ₹ 4,12,00,963/- is set aside. In respect of 'cleaning services', the same have been provided by the appellant to various organizations including Govt. Hospitals, Govt. Educational Institutions, Horticulture, Agriculture, Housing Societies etc. - appellant have paid Service Tax suo motu even before the issue of show-cause notice on the value of cleaning services provided to 'Private Hospitals, Private Educational Institutions, Charitable Hospital and Institutions considering the value of the same as inclusive of Service Tax amounting to ₹ 19,20,285/-. - demand of ₹ 2,94,55,469/- towards cleaning services is erroneous and is accordingly set aside. Even in the earlier period out of 7 SEZ units (under dispute) except Punj Lloyd and Glenmark Pharma, services have been provided to these SEZ units and based on the certificate from the Chartered accountant, exemption was allowed to the appellant. In the present case also, the certificate of chartered Accountant is available on record and the same was filed before the adjudicating authority also, which is evident from the impugned order. The certificate certifies that the security services valued at ₹ 31,97,986/- was provided to Punj Lloyd under the head, 'services provided to SEZ units during 2011-12. Thus, it is evident that the appellant have provided services to the SEZ units and accordingly the demand of ₹ 30,68,290/- attributable on this account is set aside. So far the issue of difference in value of services as per ST-3 returns and balance-sheet due to introduction in point of Taxation Rules, 2011 w.e.f. 1.4.2011, the liability to discharge Service Tax was shifted from the receipt basis to accrual basis. It is evident that the liability on accrual basis has been discharged, on the difference in the value of the services for the prior period also and therefore, the same were not included in the gross value, determined for ST-3 returns for 2011-12. So far the issue of 'reimbursement of expenses' which have been taxed, it is seen that the appellant have voluntarily deposited ₹ 31,37,207/- out of the total demand on this count as ₹ 34,64,339/- prior to issue of show-cause notice. This small difference of about 10% being ₹ 3,23,132/- remains, which is attributable to erroneous computation by Revenue by considering the gross value of service as exclusive of Service Tax instead of considering the same as inclusive of Service Tax. It is also taken notice that for earlier period, order dated 12.11.2012 in the appellant's own case, the adjudicating authority has accepted and correctly held that the value of service shall be considered as inclusive of Service Tax. - Decided in favour of assessee.
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