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TMI Blog2024 (2) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... anpower Recruitment or Supply Agency Services etc. Information received by the DGGI indicated that respondent have provided the taxable services but had not paid the appropriate amount of Service tax on taxable services provided by them. Acting on the intelligence, an inquiry was initiated against the respondent. Accordingly, a search was carried out at their registered office and documents/ records relevant to the inquiry available which at the said premises were withdrawn under Panchnama. During the investigation, it has been revealed that the Respondent had not paid service tax on services provided in respect of Manpower Recruitment and Supply Agency Services, Cleaning Services, Housekeeping services, Rent-a-cab service, Solid Waste Management services to various government offices, government hospitals, community health centers, medical colleges, municipal corporation, Government Educational Institutes. Investigative agency have further observed that the respondent had not shown the amount of taxable value and Service tax payable thereon in their ST-3 returns filed with the department. Accordingly a detail show cause notice dated 21.11.2017 was issued to the respondent proposin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee are providing health services under the supervision of authorized medical officers of government -run municipal hospitals and government health centers and hence eligible for exemption under Sr. No. 25(a) of Notification No. 25/2012-ST upto 11.07.2014; that the supply of manpower services provided by the assessee to the government run public health institutions is nothing but Public health to the Government which is exempted in terms of Notification No. 25/2012-ST as amended vide Notification No. 6/2014-ST dated 11.07.2014. The nature of activity of assessee i.e. Supply of manpower to various institutions, as per the agreement made between the service recipients, is squarely falls under the category of "Manpower Recruitment of Supply Agency". Adjudicating authority has erred in holding that the assessee is providing health services. 5. He also submits that exemption from payment of Service tax under Sr. No. 25(a) of Notification No. 25/2012-ST dated 20.06.2012 is available when service is provided to Government, a local authority or a government authority, and the said services are provided by way of "carrying out any activity in relation to any function ordinarily entrusted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aste management and without all the aforementioned services public health cannot be achieved. On perusal of the Sr. No. 25 of Notification 25/2012-ST dated 20.06.2012 as amended, it would be seen that the above said exemption is available only when services are provided to Government, a local authority or a government authority, if the said services is given 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. Upto 10.07.2014 and with effect from 11.07.2014 services by "way of water supply, public health, sanitation conservancy, solid waste management of slum improvement and up-graduation". All such works are carried out by Municipality in public common spaces. Municipality acts to provide facilities and services for the safe disposal of human urine and solid waste, maintenance of hygienic conditions, through services such as garbage collection and waste water disposal etc. The Municipality does not clean the premises of individual hospitals, government undertakings, educational institutions etc., Works of Cleaning/ Housekeeping of hospital, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notices inasmuch as it is nowhere alleged in the show cause notice that the service recipients, i.e. government hospitals, medical colleges, primary health centres, community health centres, etc. cannot be treated as Government, a local authority or a Government authority. The fact that the service recipients were all government run bodies and were engaged in public service is nowhere disputed or questioned in the show cause notice. It is settled law that a new case cannot be made out in appeal proceedings and the lower authority cannot be directed to go beyond the scope of show cause notice. He placed reliance on following decisions:- (i) Krishan Petrochemicals - 2024(304) ELT 744 (Tri. Ahmd.) (ii) Amar Coach Builders - 2005(191) ELT 621 (Tri. Del.) (iii) A.P. Industrial Components - 2002 (148) ELT 246(Tri. Chennai.) 12. He further submits that it is duly admitted by department that paramedics supplied by respondents were trained health care professionals who worked in Government Hospitals and public health centres under supervision of medical superintendent and Medical Officers. The service involved in supply of paramedics and other supporting staff to governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax amounting to Rs. 46,71,866/- is dropped. The appeals have been primarily filed with repeated prayers of general nature i.e. for remand rather than contesting the impugned orders on merit. Hence, the appeals of revenue are devoid of merit and therefore, the same is liable to be rejected. 18. He further submits that the issue involved in this case is about interpretation of statute in general and Notification No. 25/2012-ST dated 20.05.2012, as amended, in particular. The respondent had a bona fide that they are eligible for the exemption owing to the fact that service provided by them were in relation to public health and sanitation conservancy. The belief of Respondent has been duly upheld by the Ld. Adjudicating authority. Extended period of limitation is also not invocable where the issue involves interpretation, there is a bona fide belief of assessee regarding exemption to the services provided by him and all the transactions are duly recorded in the books of accounts. He placed reliance on following judgments:- (i) Sujana Metal Products Ltd. -2011(273)ELT 112(Tri. Bang.) (ii) Anjuman Islahul Muslimin -2019(27)GSTL 685 (Tri. All.) (iii) Patel Labour Contracto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in Notification No. 25/2012-S.T. needs to be reproduced and the same are reproduced below for ready reference. "25. Services provided to Government, a local authority or a governmental authority by way of - (a) 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; or Further Notification No. 6/2014-ST dated 11.07.2014 substituted entry No. 25 of above mentioned Notification as under : (viii) in entry 25, for item (a) , the following item shall be substituted, namely :- "(a) water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation; or"; 23. On perusal of the above entry of Notification No. 25/2012-ST dated 20.06.2012 as amended vide Notification No. 6/2014-ST dated 11.07.2014, it would be seen that the above said exemption is available to services which are provided to Government, a local authority or a government authority by way of carrying out any activity in relation to any function ordinarily entrusted to a Municipality in relation to water sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivity in relation to public health. In the present disputed matter respondent fulfill both the requirement. Therefore, we do not find any reason for interfering in the conclusion reached by the Ld. Commissioner in the impugned order before us. In our view, impugned order is correct, legal and does not suffer from any infirmity. 24. Further we find that the revenue for denying the claim of above exemption also take the ground that the para-medics and other staff provided by the respondent do not have any direct contract with the patients and do not raise any invoices on the patients and also do not have any legal responsibility to provide public health services on his own account. In this context we find that a plain reading of the above provisions of Notification No. 25/2012-ST as amended makes it clear that there is no requirement of a contract between the para-medics, etc. and Patients. There is no requirement that such para-medics and personnel must issue invoices in the name of patients. In such circumstance, it is not permissible to insert such a requirement with a view to deny the exemption. The requirement of the said above exemption entry is only that services must be pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conduct of examination by, such institution;"; 26. We find that the Serial No. 9 of the Mega Exemption Notification No. 25/2012-S.T., dated 20-06-2012 exempted from service tax the services by way of "(a) auxiliary education services to an educational institution". Further, vide Notification No. 06/2014, dated 11-07-2014 , Entry 9 came to be substituted as above. We also find that C.B.E. & C. vide their Circular No. 172/7/2013-S.T., dated 19-9-2013, which has been issued for clarification regarding levy of service tax on certain services relating to the education sector clarify as under : 2. The matter is covered by two provisions of the Finance Act, 1994. Section 66D of the Finance Act contains a negative list of services and clause (I) thereof reads as under : "services by way of- (i) pre-school education and education upto higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course;". Further Section 93(1) of the Finance Act, 1994, enables the Government to exempt generally or subject to such conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew respondent is eligible for exemption from payment of Service Tax for supply of manpower to above mentioned educational institutions under Sr. No. 9 of Notification No. 25/2012-ST dated 20.06.2012. 27. As regard the cleaning and housekeeping services provided by the respondent to Government offices, Courts, government undertakings we find that in this regard Ld. Adjudicating authority rightly concluded that these services are exempted under Sl. No. 25 of Notification No. 25/2012-ST dated 12.06.2012 as amended by Notification No. 6/2014-ST dated 11.07.2014. We find that as per Sr. No. 25(a) of Notification No. 25/2012-ST dated 20.06.2012 as amended vide Notification No. 6/2014-ST dated 11.07.2014, service provided to Government, Local Authority or a Government authority by way of carrying out any activity in relation to public health, sanitation conservancy, solid waste management etc. are exempted from service tax. We find that in the present matter revenue demanded the services tax from the respondent for providing cleaning services to Government Hospitals, courts, local authorities, government undertakings etc. We find that the cleaning and housekeeping services are an essent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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