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2016 (11) TMI 198 - AT - Service TaxService tax liability - Management, Maintenance and Repair services of ATM - services brought under service tax net from 01.05.2006 - Held that - the service tax liability on ATM operation as Management, Maintenance and Repair services was brought under the service tax net from 01.05.2006. The activity conducted by the respondent of erection of ATM maintenance thereof was sought to be taxed under the Management, Maintenance and Repair services for the earlier period holding that the ATM machine is also a machine. Cleaning services - Held that - the cleaning activity undertaken by the respondent is in respect of soiled notes stuck in the machine, various other operations of the ATM machine and removal of waste paper in and around the machine. Agreement entered by the respondent with their service recipient clearly indicate that the cleaning activity in respect of ATM Machine only. The Adjudicating Authority was correct in dropping the proceedings initiated by the show-cause notice - reliance placed on judgement of the Tribunal in the case of NCR Corporation India Pvt. Ltd. 2008 (5) TMI 27 - CESTAT BANGALORE wherein identical issue was decided in favour of the assessee - appeal rejected - decided against Revenue.
Issues involved: Service tax liability on operations related to ATM, including management, maintenance, repair services, and cleaning services.
Analysis: Issue 1: Service tax liability on ATM operations The appeal filed by the Revenue concerns the service tax liability on the operations conducted by the respondent in relation to ATMs. The Revenue claimed that the respondent was liable to discharge service tax on Management, Maintenance, and Repair services for the period 2004-05 and 2008-09, as well as on Business Auxiliary Service due to bad debts in 2007-08 and 2008-09. However, the respondent argued that they were not liable for service tax under these categories as the service tax liability for ATM operations was introduced from 01.05.2006, and they had already paid the tax for that period. The Adjudicating Authority, after examining the evidence, concluded that the proceedings initiated by the Revenue were not valid concerning the demand for service tax under Management, Maintenance, and Repair services. The Tribunal agreed with this decision, emphasizing that the specific service tax liability for ATM operations was introduced from 01.05.2006, indicating that earlier periods were not subject to taxation. Issue 2: Cleaning services liability Apart from the Management, Maintenance, and Repair services, the Revenue also claimed tax liability on cleaning services provided by the respondent. However, upon review of the records, it was found that the cleaning activities were related to the ATM machine itself, involving tasks like removing soiled notes, other operations of the machine, and disposal of waste paper in and around the machine. The agreements between the respondent and their service recipient confirmed that the cleaning services were specifically for the ATM machine. The Tribunal, considering the facts and the precedent set by a previous judgment in the case of NCR Corporation India Pvt. Ltd., upheld the decision of the Adjudicating Authority to drop the proceedings related to the cleaning services tax liability. In conclusion, the Tribunal found that the Revenue's appeal lacked merit and was therefore rejected based on the established legal principles, the specific introduction of service tax liability for ATM operations from a certain date, and the nature of the cleaning services provided by the respondent.
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