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2016 (2) TMI 844 - CESTAT MUMBAI

2016 (2) TMI 844 - CESTAT MUMBAI - 2016 (41) S.T.R. 548 (Tri. - Mumbai) - Demand of service tax Cleaning Agency Services - contract for Cleaning Services by Nashik Thermal Power Station - SCN was issued on the ground that there was an escapement of tax under Cleaning Agency Services, Business Support services and Cargo Handling Services. The adjudicating authority has confirmed demand raised on all these services. The first appellate authority has set aside the demands on Business Support Servic .....

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may not be covered under the category of Cleaning Agency Services. While upholding the demand raised under the category of cleaning services, we remand the matter back to the adjudicating authority for limited question of requantification of the demand, interest and penalties by reduction of the value indicated for loading and unloading of coal, movement of coal etc. - Decided partly in favor of assessee. - Appeal No.ST/679 &729/10-Mum - Final Order Nos. A/2585-2586/2015-WZB/STB - Dated:- 5-8-20 .....

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Services as also non imposition of penalties; while the appellant ssessee is aggrieved by the impugned order that the first appellate authority has confirmed the demand of service tax under Cleaning Agency Services . 3. We have heard both sides and perused the records. 4. On perusal of records, it transpires that the appellant was awarded with a contract for Cleaning Services by Nashik Thermal Power Station. The appellant is service tax payer under the category of Cleaning Agency Services and Bu .....

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that the appellant has been engaged in Cleaning agency services and all the activities which have been awarded to them under the contract. He would take us through the contract in detail. It is his submission that the Cleaning services as to be done by the appellant would not fall under the category as it is in respect of conveyer etc. We do not agree with the contentions raised by the appellants assessee. On perusal of agreement entered into with Nasik Tharmal Power Station, we find that the C .....

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ry of cleaning services, we remand the matter back to the adjudicating authority for limited question of requantification of the demand, interest and penalties by reduction of the value indicated for loading and unloading of coal, movement of coal etc. 6. As regard the appeal of Revenue against setting aside of the demands raised under Business Support Services and Cargo Handling Services, we find that the first appellate authority has recorded following findings. 9.1 Service tax of ₹ 10,4 .....

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gory of Business support service. To this, contention of appellant is that the activity performed by them does not have any contention of appellant is that the activity performed by them does not have any ingredients of the definition of above service. They have also enclosed sample copy of work order No. CGM/NTPS/Plan-II/W-3083/47/RC-6313/09125 issued by Maharashtra State Power Generation Company Ltd. (MSPGCL), Nashik Thermal Power Station, Elkhart. The work order is issued for the work of remo .....

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ing, processing off purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing off transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. Explanation.- For the purposes of this clause, the expression infrastructural support services includes pro .....

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. These services include transaction processing, routine administration or accountancy, customer relationship management and tale-marketing. There are also business entities which provide infrastructural support such as providing instant offices along with secretarial assistance known as Business Centre Services . It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support .....

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ot exhaustive but illustrative, hence in order to expand the list, the activities which can be added to the list should off the same kind or nature off the activities listed. It is observed that activity of the appellant will be an odd man if included in the indicative list. Thus if rule of ejusdem generis is applied, the activity of appellant viz. removal, collection, loading, transportation and unloading of coal mill rejects/ach cannot be attached to the indicative list. The list clearly sugge .....

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under the category off Business Support service is not sustainable and order to this extent is required to be set aside. 10.1 Show cause notice was issued demanding service tax of ₹ 18,68,069/- on Cargo handling service considering taxable value of ₹ 2,24,88,042/-.After careful reworking, JC has arrived at revised taxable value to ₹ 2,22,11,793/- and thereby reduced the demand to ₹ 18,64,805/- from ₹ 18,68,069/-. SCN alleges that the appellant is providing service o .....

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veyed in ship, airoplane or vehicle; that in their case no vehicle is used but using tippling system of unload. In order to see scope of the service, Section 65 (23) is reproduced below:- Section 65 (23) cargo handling service means loading, unloading, packing or unpacking off cargo and includes,- (a) Cargo handling services provided for freight in special containers or for non-containerized freight, services provided by a container freight terminal or any other freight terminal, for all modes .....

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or mere transportation of goods. Clarification given under para 3, 3.1 and 3.2 in letter F. No. B 11/1/2002-TRU dated 01-08-2002 is also relevant and therefore reproduced below:- 3. The services which are liable to tax under this category are the services provided by cargo handling agencies who undertake the activity of packing, unpacking, loading and unloading of goods meant to be transported by any means of transportation namely truck, rail, ship or aircraft. Well known examples of cargo handl .....

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therefore not liable to service tax. As per above clarification the service of packing, unpacking, loading and unloading of goods meant to the transported by any means of transportation namely truck, rail ship of aircraft is covered. In the present case the appellant is providing the service of unloading of coal but not for the purposes of transportation but the unloading is done due to receipt of coal at Thermal Power Station. Nodoubt after unloading, the coal is stored at NTPS but same is not .....

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railway wagons to the site of thermal Power station with the aid of wagon tippling system to be fed in boiler bunkers through conveyor system, the activity does not fall under the ambit of cargo handling services. Para of the said decision is reproduced below:- 10. In the instant case, the coal is handled/moved from fairway wagons to the site of Thermal Power Station with the aid of wagon tippling system to be fed in the boiler bunkers through conveyor system. It is evident that handling of the .....

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