2015 (9) TMI 886 - AT - Service Tax

Manpower Recruitment & Supply Agency - Exemption under notification No. 45/2010 dated 20/07/2010 - Cleaning agency - Held that - The services rendered by appellant to Maharashtra State Electricity Distribution Company is exempted retrospectively by notification No. 45/2010 dt. 20/07/2010. It is undisputed that services of Manpower Recruitment & Supply Agency are rendered to MSEDL, by the appellant. In view of retrospective amendment as also relying on ratio of the decision of Tribunal in the case of Sri Ganesh Enterprises (2014 (2) TMI 436 - CESTAT BANGALORE) we set aside that portion of the impugned order and allow the appeal. As regards the services of Cleaning Agency we find that issue needs reconsideration as the entire findings are only in respect of Manpower Recruitment & Supply Service. Holding that appeal to this portion of the impugned order needs re-consideration by the adjudicating authority, who will reconsider the issue and quantify the Service Tax Liability on this point, and as also the question of penalty. Adjudicating authority should follow principles of natural justice while coming to a conclusion. - Decided in favour of assessee.

Summary

Issues: Taxability of services rendered by the appellant, retrospective exemption, quantification of tax liability for cleaning services.

In this judgment by the Appellate Tribunal CESTAT MUMBAI, the issue at hand was the taxability of services provided by the appellant, specifically in the context of "Manpower Recruitment & Supply Agency" and cleaning agency services. The appellant contended that their services to Maharashtra State Electricity Distribution Company were exempted retrospectively by notification No. 45/2010. The Tribunal considered the appellant's argument, noting that similar relief was granted in a previous case. The Tribunal found merit in the appellant's contentions, stating that the services to MSEDL were indeed exempted retrospectively, and therefore set aside that part of the order and allowed the appeal.

Regarding the services of the "Cleaning Agency," the Tribunal determined that this aspect required further consideration as the previous findings only addressed the Manpower Recruitment & Supply Service. The Tribunal directed the adjudicating authority to reevaluate this issue, including quantifying the Service Tax Liability for cleaning services and considering any penalties. The adjudicating authority was instructed to adhere to the principles of natural justice while reaching a conclusion on this matter. Ultimately, the appeal was disposed of with the above decisions pronounced in court by the Tribunal.