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2018 (2) TMI 1412 - AT - Service TaxContractual arrangements with Indian Railways and Catering Tourism Corporation Limited (IRCTC) - Revenue entertained a view that they are not discharging Service Tax on certain activities undertaken/considerations received - Cleaning Services - Held that: - It is clear that cleaning is with reference to objects or premises of commercial or industrial building, factory and premises thereof. The original authority gave a reason that railway coaches are either standing on platform or running on the track and the same are to be considered as object on the premises for Indian railway holding railway coaches and contracts constituents of capital assets and machinery of Indian railway, the original authority held cleaning of such railway coaches will be considered as cleaning of commercial premises - the interpretation of the original authority is far fetched and not sustainable in view of the plain meaning of the statutory definition for tax entry. Supply of Bed Rolls to Passengers of Railways - Held that: - In M/s Foodworld Railways and Institutional Caterers [2014 (12) TMI 662 - CESTAT NEW DELHI], the Tribunal held that such services cannot be considered as BSS. It is more appropriately classifiable under Business Auxiliary Service as it is essentially a customer care service provided on behalf of the client - demand not sustainable. Outdoor Catering Service - Held that: - the tax is paid on received amount not on billed amount which included element of VAT - The jurisdictional authority can verify the documents to satisfy the correctness of quantification of tax liability as claimed by the appellant - matter on remand. Supply of newspaper to passengers in Rajdhani train - Held that: - the original authority upheld the tax liability on the consideration received for supply of newspaper only on the ground that it is part of a composite contract of catering and on board service. We note that the reasoning adopted by the original authority to consider the supply of newspaper as part of their catering service is not sustainable - tax liability do not sustain. Extended period - penalty - Held that: - The demand for extended period also cannot be sustained in respect of cases where service tax liability was affirmed in connection with service to Railways/IRCTC - the penalties imposed on the appellant are also set-aside. Appeal allowed in part.
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