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2017 (3) TMI 615 - AT - Service TaxLiability of tax - cleaning service rendered to railways, diesel locomotives, railway station premises, general manager's office, Airport Authority of India and certain colleges and schools - whether these organizations are commercial organizations or not so as to attract levy of service tax? - Held that: - to decide the nature of building, whether commercial / industrial, it is necessarily, the nature and the functions of the occupant is examined - railways or airport authority as non commercial organizations only on the ground that they are public utility organizations has no legal basis. Incidentally, it may be noted that the freight revenue of railways is more than double of the activity of passenger revenue. It only shows that substantial railways is in commercial freight transport. Even, with reference to the status of the railway stations, the same cannot be considered as non commercial building or premises. Regarding ordinance factory - Held that: - the definition covers industrial building and premises thereof. Ordnance factory premises are covered by industrial building. Even otherwise clause (ii) of the definition clearly mentions factory as one of the premises covered for tax liability. The factory in the present case is not in relation to agriculture, horticulture, animal husbandry or for dairying. As such in the absence of any exclusion from the statutory definition, the appellants are liable to service tax on this account. With reference to cleaning activity of circuit house, college, hospital and school premises, we find these are not covered by the tax entry either as commercial or industrial building or as a factory building and machinery, tank or reservoir of commercial and industrial building and premises thereof. Extended period of limitation - Held that: - The conduct of the appellant regarding the disclosure of details referring to the earlier meetings with the jurisdictional officers brings out the fact that allegation of suppression or willful misstatement cannot be sustained in this case against the appellant - the appellant specifically intimated regarding their belief on non-liability of tax because of the services being rendered to Government and other non-commercial organizations - extended period not invokable. Appeal disposed off - decided partly in favor of appellant.
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