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2021 (4) TMI 119 - AT - Service TaxFailure to pay Service Tax - Man-power Recruitment or Supply Agency - argument of the appellant is that they being a welfare organisation working upon no profit fundamental may be exempted from Service Tax liability for providing the manpower services is not sustainable in the eyes of the laws - penalty on office bearers - extended period of limitation - HELD THAT:- The bare perusal of the provisions of Rule 2 (g) of Service Tax Rules, 1994 make it abundantly clear that there is no exclusion for any category of service providers from the ambit of the tax liability with respect to manpower recruitment and supply agency service the use of word “any person” in the afore mentioned definitions is sufficient to form the above opinion. Hence, the argument of the appellant that they being a welfare organisation working upon no profit fundamental may be exempted from Service Tax liability for providing the manpower services is not sustainable in the eyes of the laws. No benefit in terms of said argument can be extended in favour of the appellants. Extended period of limitation - HELD THAT:- There is nothing brought on record by the appellants to falsify the said presumption. It is also apparent from record that the appellants Society has received gross value amounting to ₹ 110410414/- for various service receivers against the impugned service provided by them. Accordingly their tax liability was ₹ 12617613/-. However, from the documents resumed, it was observed by the Department that liability only for an amount of ₹ 1100940 has been discharged by the appellants Society and they are still liable to pay an amount of ₹ 11516673/-. These observations which have nowhere been denied by the appellant corroborate the appellants knowledge about their liability but suppression of discharge thereof. Resultantly, the circumstances of present case are held to have an element of wilful concealment or suppression of liability which under Section 77 entitles the Department to have a period of 5 years instead of one year to serve a show cause notice. There is no denial of the Department for Kendriya Vidhyalays also to be the service recipient of the appellants and that such services are exempted under Notification No.6/2014. Notification No.6/2014 dated 11 July, 2014 amends Notification No.25/2012-ST dated 20th June, 2012. Services provided to an educational Institution by way of security or cleaning or house keeping services performed in such educational institutions have been exempted from the Service Tax liability - the demand to the extent of service tax liability qua the services rendered by the appellant Society to Kendriya Vidhyalayas is not sustainable and same is liable to be set aside. Penalty on the office bearers - HELD THAT:- In view of the definition of company in Section 3 of Companies Act that the appellants Society is not a Company but a Co-operative Society whose affairs are to be handled by a committee of office bearers having a life span of five years. It is also apparent from the record that the impugned period of demand has two different set of office bearers. Seen from any stretch of imagination the penalty cannot be imposed upon all of them - once the penalty is imposed upon the appellants Society, none other can be burdened with the penalty for the same omission as is alleged against the Society. Appeal allowed in part.
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