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2023 (1) TMI 1185 - AT - Service TaxLevy of service tax - services provided by the public sector undertaking formed by the Government especially for the purpose of soil conservation and land reclamation - exemption to specified service including conservancy as per N/N. 25/2012 - scope of the term conservancy - supply of tangible service - rent-a-cab service - HELD THAT:- The activity undertaken by the appellant would be specifically covered by the Notification No. 25/2012 –ST dated 20.06.2012 under Sr No.25 thereof. In view of services provided by the appellant would be exempt with effect from 20.06.2012 onwards under the notification. It is also noticed that the entire amount received by the appellant from the government in the shape of grant is in the nature of reimbursement i.e. to say the actual expenditure incurred for the provision of the service is reimbursed by the Government of Gujarat. For that reason also the amount paid by the Government to the appellant cannot be taxed as does not fall within the definition of consideration for service. In these circumstances, there are no merit in the demand of service tax under the head of business auxiliary service against the appellant. The demand on this count is set aside and the appeal on this count is allowed. Demand under the head of supply of tangible service - HELD THAT:- Neither show cause notice nor the impugned order gives any grounds to substantiate the claim that the physical possession and effective control of the equipment is not transferred to the clients but is retain to the appellant. In these circumstances, there are no evidence to support the charges levied on the appellant in regard to supply of tangible goods service - Demand on this count is also set aside and appeal is allowed. Demand under the category of rent-a-cab service - HELD THAT:- There are substantial force in the argument of the appellant that this is not a service provider/ service recipient relationship. The appellants are not in the business of rent – a-cab providing rent a cab service and any recovery is made for private use of vehicle are in terms of the employment agreement. Thus, there are no merit in the argument of the Revenue - Demand on this count is also set aside and appeal is allowed. Appeal allowed.
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