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2022 (3) TMI 403 - AT - Service TaxLevy of service tax - Cleaning services such as up-keeping/environmental services - HELD THAT:- It can be seen that the appellants were engaged in all kind of activities relating to up keep of the residential colony. It involved cleaning of not only open spaces but also various facilities located within the residential colony - It is seen that the terms premises in the definition of cleaning activity does not cover the premises of service recipients but it covers only the premises of “commercial or industrial building” or “factory, plant or machinery, tank or reservoir” of such commercial or industrial building only. It is not as if all the premises on the service recipient would be covered in the definition. The definition of input services is very vast and uses words like “in or in relation to “ and also has inclusive parts which covers services received at places other than the main office. Moreover the CBEC Circular No. B1/6/2005-TRU, dated 27-7-2005 at www.cbec.gov.in has also clarified that such cleaning services in respect of non-commercial buildings and premises thereof would not be covered within the purview of Service Tax under this category. The residential Colony would therefore not be covered under the description ‘premises’ appearing in Section 65 (24b). Cleaning services or horticulture - Cutting of trees, grass shrubs etc. and maintain it over a period of time in the Gas collection Centre of the service recipient namely ONGC - HELD THAT:- The activity of the appellant cannot be treated as horticulture. It is apparent that the activity undertaken by the appellant is in the nature of cleaning activity and therefore covered under the definition of this service as defined in Section 65 (24b) of the Finance Act, 1994, the demand of this ground is therefore upheld. Clearing services as such Grass, Bush, Jungle cutting at Area-III of ONGC Ank. And regular maintenance as tender documents - HELD THAT:- There is absolutely no doubt that the said activity amounted to provision of the cleaning services as defined in Section 65 (24b) of Finance Act, 1994 and there could not have been any bonafide doubt to in that regard - there are no merit in the argument that the appellant, harboured a bonafide view. Penalty - HELD THAT:- Penalty under Section 78 has been imposed amounting to double of the total duty confirm. The said penalty is excessive needs to be revised to equivalent to the duty confirm and thus the penalty is revised to ₹ 2,25,803/- only under Section 78. The penalty under section 77 is upheld as the appellant had not taken registration or filed ST-3 return. Appeal allowed in part.
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