Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 766 - CESTAT KOLKATAClassification of services - cleaning services or GTA Services - appellant entered into an agreement with M/s CESC Ltd to evacuate fly ash from silos and hydro bins of various thermal power stations of M/s CESC Ltd. - period 16.06.2005 to 04.01.2007 - HELD THAT:- A perusal of the definition of ‘cleaning service’ indicates that the Appellant has not undertaken any of the activities specified therein. It is observed that ‘fly ash’ is being evacuated and removed as per the contract and the same cannot be termed as a ‘cleaning activity’. The evacuation of ‘fly ash’ is required to continue the industrial activity. Unless the accumulated fly ash is removed from the silos, it cannot be utilized to receive further ‘fly ash’ emerging during the course of manufacturing. Thus, it is observed that removal of ‘fly ash’ from the silos is an essential part of the production process. The issue is no more res Integra and has been decided by the Tribunal in the case of M/S. COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX-RANCHI VERSUS M/S. HINDUSTAN STEEL WORKS CONSTRUCTION LTD. [2018 (11) TMI 1217 - CESTAT KOLKATA] where it was held that In the present case, the activity of excavation and transportation of fly ash from the pond, for channeling the slurry water-flow cannot be termed as “cleaning activity” in terms of Section 65 (24B) of the Finance Act. The Respondent is not clearing the fly ash with the objective of cleaning the pond or free the pond from contamination. Fly ash is being excavated and transported to the specified areas as per the contract. Thus, the activities undertaken by the Appellant are not chargeable to service tax under the category of ‘Cleaning Service’ - appeal allowed.
|