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2017 (7) TMI 131 - AT - Service TaxWorks Contract Service - fixing of swimming pool tiles at the Balewadi Stadium for Commonwealth Youth Games - Held that - there is no dispute that Works Contract service is provided in respect of the service of fixing of swimming pool tiles at the Balewadi Stadium for Commonwealth Youth Games which is clearly not in respect of any Commercial or Industrial building and does not cover under the services of Works Contract - In respect of the same service provided to the same service recipient in the case of B.G. Shirke Construction Technology Pvt. Ltd. 2013 (11) TMI 870 - CESTAT MUMBAI , this Tribunal has held that the construction of sports complex and sports stadium is non-commercial construction therefore not liable to Service Tax - demand set aside. Cleaning services - Cleaning Service of swimming pool, deck and toilets which are owned by Pimpri Chinchwad Municipal Corporation - Held that - As per the definition of cleaning activity given under Section 65(24b) of the Act, cleaning Service provided only to Commercial or Industrial establishment is covered. As per the definition of cleaning service, in the present case being in respect of Government building which is for public utility does not fall under the definition and not liable for Service Tax - demand set aside. Appeal allowed - decided in favor of appellant.
Issues:
1. Whether the services provided by the appellant fall under "Works Contract Service and Cleaning Services" and are chargeable to Service Tax. Analysis: The appellant was providing works contract services for fixing swimming pool tiles at a stadium for a sports event. The department contended that these services, along with cleaning services provided to a municipal corporation, were taxable under Works Contract Service and Cleaning Services. The appellant argued that the works contract service did not pertain to a commercial or industrial building, citing precedents like B.G. Shirke Construction Technology Pvt. Ltd. Vs. CCE, Pune-III. Similarly, the appellant claimed that the cleaning services for a government building were not taxable as they did not relate to commercial or industrial buildings, referencing cases like Bombay Intelligence Security (India) Ltd. Vs Commissioner of Service Tax, Mumbai-II. Upon reviewing the submissions, the Tribunal found that the works contract service for the sports stadium did not involve a commercial or industrial building, aligning with the precedent set in B.G. Shirke Construction Technology Pvt. Ltd. case. Consequently, the Tribunal ruled that Service Tax under Works Contract was not applicable, setting aside the demand. Regarding the cleaning services provided to the municipal corporation, the Tribunal determined that the services were for public utility and not for commercial or industrial establishments. Citing Section 65(24b) of the Act, the Tribunal noted that cleaning services provided to non-commercial organizations were excluded from taxation. The Tribunal relied on the decision in Bombay Intelligence Security (India) Ltd. case, where cleaning services to government organizations were deemed non-taxable. Consequently, the Tribunal set aside the demand for Service Tax on the cleaning services, aligning with the decisions referenced by the appellant. In conclusion, the Tribunal found that the services provided by the appellant did not fall under Works Contract Service or Cleaning Services as they did not relate to commercial or industrial buildings. The impugned order was set aside, and the appeal was allowed, as per the judgments cited and the legal provisions analyzed. (Pronounced in Court on 28.06.2017)
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