TMI Blog2019 (4) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... nts for treatment. If a hospital merely collects registration fees for registration of the patient and does not collect expenses for treatment, it cannot be said that the said hospital would fall out of the category of non-commercial building / hospital. The department having failed to establish with evidence, that Child Trust Hospital is a commercial building, the conclusion arrived by the Commissioner (Appeals) that the said hospital is a non-commercial hospital and the services rendered by the assessee to the hospital would not come within the purview of service tax requires no interference. Imposition of penalty - outdoor caterings service - extended period of limitation - Held that:- Apart from alleging that the assessee did not dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. 2. Brief facts are that the assessee is engaged in various services like Maintenance or Repair Services, Business Auxiliary Services, Outdoor Catering Services, Cargo Handling Services, Security Agency s Services, Courier Services, Cleaning Services etc. On verification of records, it was noticed that the assessee had realized an amount of ₹ 63,90,740/- for the cleaning services rendered to the Child Trust Hospital but had not discharged the service tax of ₹ 7,64,467/- on such amount. Further, it was noticed that the assessee had availed abatement of 50% in regard to outdoor catering service under Notification 1/2006-ST dated 1.3.2006. Even though they had availed the benefit of notification, they had also availed CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices to Child Trust Hospital. The said hospital is a non-commercial trust with no commercial motive involved. He relied upon the CBEC circular in F. No. B1/6/2005-TRU dated 27.7.2005. He submitted that as per para 9.3, the cleaning services provided in relation to agriculture, horticulture etc. in respect of non-commercial building and premises thereof is not covered within the purview of service tax under this category. Adverting to para 9.2 of the said circular, he argued that only the cleaning services in respect of the commercial buildings such as multiplexes, shopping complex, office complex and industrial buildings would be covered by the levy of service tax. The hospital being a charitable trust is a non-commercial building. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case, only certain input services like telephone services, courier services, security services are common input services used for providing output service of outdoor catering service. As per Rule 6(5) of CCR, 2004, courier services would be covered and the same can be availed as common input services when they are rendering both taxable and exempted services. That the two common input services like telephone services and security services which were availed by them were in respect of other taxable services provided by them to which they are fully eligible under CCR 2004 subject to compliance with Rule 6 of the said Rule which they had complied with. That Notification 1/2006 did not bar availing the credit which are otherwise permitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s incorrect and illegal. 7. Heard both sides. 8. The first issue is with regard to the demand of service tax on cleaning services. The Commissioner (Appeals) has set aside the demand observing that the Child Trust Hospital for which the assessee has rendered the services is a non-commercial building. In Circular dated 27.7.2005 referred above, it is seen that the cleaning services in respect of non- commercial building and premises thereof would not be covered within the purview of service tax under this category. In the present case, the assessee has produced documents to show that the said hospital been given approval under section 80G(5)(iv) of the Income Tax Act for deduction in donations made to Kanchi Kamakoti Child Trust Hospit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals), we find that the conclusion of the Commissioner (Appeals) that demand for the extended period cannot sustain requires no interference, so also we are of the opinion that the penalty has been rightly set aside by the Commissioner (Appeals). 10. The next issue is with regard to the appeal filed by the assessee for the demand confirmed in respect of outdoor catering service for the normal period. The assessee does not deny that they have availed common input services in the nature of telephone service, courier service and security services for providing outdoor catering service as well as other taxable services. The ld. Counsel has made a frail effort to take shelter under Rule 6(5) of CCR, 2004. The said Rule appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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