2014 (1) TMI 309 - AT - Service Tax

Waiver of pre deposit - Cleaning activity services - whether the activities hereinabove mentioned by us would fall under the definition of Cleaning Activities or not - Held that - cutting and removal of all kind of unwanted grass, bushes, trees, weeds and removal/uprooting the roots of wild vegetation, removal of debris and garbage from the roads, streets and open space of ONGC township and residential areas of the ONGC prima facie will not fall not under the Cleaning Activities - appellant has made out a prima facie case for the waiver of pre-deposit of the amounts involved - Stay granted.

Summary

Issues:
1. Whether the activities of the appellant fall under the definition of 'Cleaning Activities' for the purpose of service tax liability waiver.

Analysis:
The case involved a stay petition seeking the waiver of pre-deposit of service tax amounting to Rs. 4,62,865/- along with interest and penalties under the Finance Act, 1994. The service tax liability, interest, and penalties were confirmed by lower authorities based on the appellant's contract with ONGC for cutting and removal of unwanted vegetation, debris, and garbage from ONGC township and residential areas. The authorities categorized these activities as 'Cleaning activity services,' while the appellant disputed this classification, arguing that the services provided did not strictly fall under 'Cleaning Activities.'

Upon hearing both sides and examining the records, the main issue revolved around determining whether the appellant's activities qualified as 'Cleaning Activities' for tax purposes. The appellant contended that the work performed, such as cutting vegetation near tanks and reservoirs and removing garbage from roads and residential areas, was not solely cleaning but included other maintenance tasks. The Tribunal acknowledged the appellant's arguments, noting that the services were primarily focused on the township and residential premises, rather than commercial or industrial sites. The Tribunal found that the appellant had presented a prima facie case that the activities might not fit within the scope of 'Cleaning Activities.' The decision highlighted that all legal submissions would be considered during the final appeal disposal.

In conclusion, the Tribunal granted the appellant's stay petition, allowing the waiver of pre-deposit and staying the recovery of the amounts in question until the appeal's final resolution. The judgment emphasized that the appellant had established a prima facie case for the waiver, indicating that the nature of the services provided did not unequivocally align with 'Cleaning Activities' as defined under the law.