9911796707
TMI Blog2025 (1) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... p; 2008 - 2009 to 2011 - 2012 Date of issue of demand - 18.10.2013 (Barred by limitation of time as, demand was not issued within one year) ST/76848/16 EX-SERVICEMEN RESETTLEMENT SOCIETY, KOLKATA O/O No.45/Commr/ST-I/KOL/ 2016-17 dt.18.08.2016 passed by the Ld Pr. Commr. of Service, Kolkata Demand confirmed with penalty - Rs. 1,17,48,573/- + Penalty Period of demand - 2012 - 2013 Date of issue of demand -21.10.2014 ST/76962/16 EX-SERVICEMEN RESETTLEMENT SOCIETY, KOLKATA O/A No. 220/ST-1/KOL/2016 dt.24.08.2016 passed by the Ld Commissioner of Central Excise (Appeals-1), Demand upheld with penalty - Rs. 19,51,578/- Period of demand - 2013 - 2014 Date of issue of demand - 23.04.2015 ST/75950/2018 Revenue Appeal COMMISSIONER OF CGST & CEX., KOLKATA NORTH COMM'TE O/O No.11/Commr./ CGST & CX/KOL/ NORTH/2017-18 dt.31.10.2017 ST Demand DROPPED - Rs. 2,19,83,449/- Period of demand - 2015 - 2016 2.1 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes the following submissions : (i) An AGREEMENT DATED 01.01. 2005 was executed between Rajya Sainik Board (RSB), which is an organization formed under the West Bengal Service Rules, and Ex-servicemen Resettlement Society (EXRS). Functions of RSB is for the resettlement and rehabilitation of all ex-servicemen and their dependents in the State of West Bengal, while EXRS Society was formed under the West Bengal Societies Registration Act, 1961, mainly to promote job opportunities for the ex-servicemen and their dependents in the State of West Bengal on behalf of Rajya Sainik Board (RSB)/ Zilla Sainik Board (ZSB), vide Preamble of the said Agreement; (ii) That the role of RSB, being member of the Governing body of EXRS is to coordinate to procure order for provision of manpower and the EXRS is to finally execute/deploy its members for resettlement of their members on behalf of RSB/ZSB, (iii) Based on the Manpower required basically for Security services by various Govt run Hospitals and Educational Institutions, the RSB would ask the EXRS to deploy the persons for this purpose. (iv) The appellant raised the bills on the Govt run Hospitals and Educational Institutions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttlement Society (Para 7 of the letter), letter No. 13/2003/Gen./322/RSB dated 12.05.2005 issued to Deptt. Of Health & Family Welfare of Govt. of West Bengal to allot funds to the receiver of services. This is part of their evidence that it is the Govt of West Bengal which facilitates the deployment of the members of the appellants-assessees as security / cleaning personnel in Govt run institutions. Therefore, it is their main submission that since no consideration is retained by them from the bills raised on the clients, appellants-assessees are not required to pay the Service Tax. 3.1 The ld. Consultant also submits that the services provided to Educational Institutions are exempted from service tax payment in view of the Notification No.14/2004-ST dated 10.09.2004 till 30.06.2012. Further, this exemption has been continued under Mega Exemption Notification No.25/2012-ST dated 20.06.2012 w.e.f. 01.07.2012 as amended vide Notification No.6/2014-ST dated 11.07.2014. Therefore, he submits that no Service Tax is required to be paid by them. 3.2 Apart from the above submissions, he submits that the appellants-assessees have not charged any consideration for the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the consultant submits that the lower authorities are in error in denying the Service Tax exemption benefit. 3.6 He draws our attention to the fact that for the period 2013-14, the Adjudicating authority has dropped the demand to the extent of Rs.19,86,194/- and for the period 2014-15, he has dropped the demand to the extent of Rs.19,66,177/-. Against these dropping of the demands, the Revenue has not preferred any further appeal before the Commissioner (Appeals). Thus the issue has reached finality. 3.7 Similarly, for the period 2015-16, the Commissioner of Service Tax, Kolkata North, has considered their submissions and dropped the demand Rs.2,19,83,449/- 3.8 The above instances show that for the demands pertaining to the subsequent periods, the Adjudicating authorities have done proper justification and dropped the proceedings. 3.9 In view of the above submissions, the Ld Consultant prays that the appeals filed by appellants-assessees, may be allowed on merits. 3.10 He further submits that all the data required for quantification of the demand has been taken by the Revenue from the Profit and Loss Account, Balance Sheet and other accounts/records maintained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us. 6. We have gone through the details of Educational Institutes to whom the services were provided. The list of the Medical Colleges & Other Institutes, to whom the security service is being rendered by the appellant, are as under : (1) IPGMER & SSKM (2) Bangur Institute of Neorology (3) Burdwan Medical College & Hospital (4) Calcutta National Medical College & Hospital (5) Chittaranjan Seva Sadan (6) BC Roy Post Graduate Institute & Pediatric Science (7) Nil Ratan Sarkar Medical College & Hospital (8) ID & BG (Medical Teaching Institution), Kolkata (9) Mednapur Medical College & Hospital (10) North Bengal Medical College & Hospital (11) Regional Institute of Ophthalmology (12) RG Kar Medical College & Hospital (13) Calcutta School of Tropical Medicine (14) Calcutta National Medical College & Hospital (15) Bankura Sammalani Medical College & Hosp (BSMCH) 7. We find from the documentary evidence that the Medical Colleges are required to run hospitals which are for the public welfare as well as provide facility of internship to the Medical College students. Therefore, we do not subscribe to the view of the Revenue that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wages of Ex-Servicemen Resettlement. Society staff is to be decided in the Governing Body of Servicemen Resettlement Society during AGM. From the above, it is apparent that the wages and other allowances were collected by the noticee. M/s Ex-Servicemen Resettlement Society, for payment to the members who are exservicemen and their dependents. In the case of Security Guards Board for Greater Bom. & Thane Dist. Vs. C.C.E., Thane-II [2017 (51) STR 51 (Tri-Mumbai), the Hon'ble CESTAT, West Zonal Bench, Mumbai, has observed that the Security Guards Board for Greater Bunt Thane Dist., constituted under Section 6 of the Maharashtra Private Security Gund (Regulation of Employment & Welfare) Act, 1981, is an agency which collects was allowances from the employers for payment to the concerned persons/authorities. Therefore, the wages and allowances are excludible from the value of service tax. l find that the case is similar to the present case of M/s Ex-Servicemen Resettlement Society where in both cases the Board/Society is collecting wages and allowances for payment it's members. Therefore, I find that the recovery of wages and bonus, contribution to PF and ESI are not to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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