TMI Blog2024 (1) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... CISE SERVICE TAX, HYDERABAD IV [ 2018 (8) TMI 816 - CESTAT HYDERABAD] and M/S DYNAMIC ENTERPRISES VERSUS CCE ST, JAIPUR [ 2018 (5) TMI 787 - CESTAT NEW DELHI] , the Tribunal has held that service tax is payable in respect of cleaning services provided to railways. In view of above, there are no merit in the order of the Commissioner dropping the demand in respect of cleaning services provided to railways and the order to that extent is set aside and appeal of Revenue to that extent is allowed. Extended period of limitation - penalties - HELD THAT:- The Commissioner himself has held that no duty was payable in respect of the services provided to railways under the belief that the said services are not chargeable to tax for variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst dropping of demand in respect of services provided to Indian Railways. 2. Learned counsel for the Prabhakar Enterprise pointed out that the proceedings were initiated on the basis of the 26AS statement of income tax and balance sheet of the appellant. The appellant rendered services of cleaning, house-keeping and manpower supply to Indian Railways, Airport Authority and also provided to SEZ Units. Demand was partly confirmed by the original adjudicating authority. Benefit of exemption was granted in respect of the services provided to Railways. This was challenged by Revenue in its appeal. Ms. Prabhakar Enterprises also filed cross objection against the Revenue appeal. 3. Revenue has argued that the benefit of exemption has been w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation conservancy, solid waste management or slum improvement and up-gradation; The said notification defines 'Government Authority' as follows: (s) governmental authority means a board, or an authority or any other body established with 90% or more pariticipation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243 W of the Constitution; 4. It has been argued by Revenue that Indian Railways are not performing any functions under Article 243W of the Constitution and as such cleaning service provided by the assessee in the present case to the Indian Railways cannot be said to be the services to provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f extended period of limitation and imposition of penalty under Section 77 and 78. 6. While various arguments have been raised by Revenue as to why the Commissioner should not have dropped the demand during the course of hearing attention was drawn to the following decisions. Mukesh Kalway 2017 (3) GSTL 183 (Tri. Del.) Sarovar Hotels Pvt Ltd. 2018 (19) GSTL 650 Dynamic Enterprises 2019 (22) GSTL 230 (Tri. Del.) 7. In all these cases the Tribunal has held that service tax is payable in respect of cleaning services provided to railways. In view of above, we do not find any merit in the order of the Commissioner dropping the demand in respect of cleaning services provided to railways and the order to that extent is set asid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be granted to the appellant. 10. In view of above, the appeal of revenue is partly allowed to the extent that the demand for the period within the limitation is up held in respect of the services provided to railways. No penalty under section 78 or 77 can be imposed in respect of this demand. 11. The appeal of M/s Prabhakar is partly allowed to the extent that the benefit of cum tax benefit is to be allowed in calculation of the demand already confirmed in the impugned order. The extended period of limitation invoked in the demand is also set aside and the demand is to be limited only to the extent of the normal period of limitation. Penalty under Section 77 and 78 is therefore set aside. The appeals are partly allowed in above te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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