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2022 (4) TMI 302 - AT - Service TaxLevy of Service Tax - rendering cleaning service mostly to non- commercial organizations, government hospitals, educational institutes - demand of service tax for the period April 2009 to March 2013 by invoking extended period of limitation - HELD THAT:- On examining of one of the agreements, between the appellant and the Medical University, Greater Noida. The nature of the work was for charges for cleaning of the central road and the invoice raised by the appellant also confirmed the same that the appellant has been providing cleaning/sanitation services - Another agreement with Allahabad University is also examined, wherein the scope of the contract is of cleaning/ sanitation/removal of garbage from road of campus road of universities of Allahabad. It is found that in balance sheet, the appellant has shown non-taxable service and taxable service separately and in ST-3 returns they have shown taxable services on which they have paid service tax. But without examining the fact that the appellant has also provided the cleaning service, the demand of service tax sought to confirmed against the appellant on the basis of gross value of services provided by the appellant as shown in the balance sheet. The service tax which has already been paid by the appellant has been reduced and the balance amount of service tax demand has been proposed. Time Limitation - HELD THAT:- The demand of service tax is barred by limitation as the service rendered by the appellant were well known to the Department in earlier proceedings, therefore, the subsequent show cause notice cannot be issued by invoking extended period of limitation On merit also, the fact is noted that no service tax was payable on cleaning services in terms of Sl. No. 12 of Notification No. 25/2012 – ST dated 20 June 2012 wherein the services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration to Sl. No. 25A, wherein services provided to Government, a local authority or a governmental authority by way of – carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation are exempt from payment of service tax . As the cleaning service has been exempt from payment of service tax in terms of the negative list to the Notification No. 25/2012- ST dated 20 June 2012, therefore, the appellant is not liable to pay service tax on cleaning services - If the same is excluded from the taxable service quantify by the Adjudicating Authority on the basis of gross value of services shown by the appellant in balance sheet, the appellant has paid service tax for supply of the para-medical services i.e. manpower recruitment and supply agency service. The demand of service tax is not sustainable against the appellant - appeal allowed - decided in favor of appellant.
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