2017 (9) TMI 550 - AT - Service Tax

Cleaning services undertaken on mines - taxability - Held that - the appellant has provided the said services within the mines area, which cannot be considered as Commercial or Industrial Buildings and premises thereof; or factory, etc , for the purpose of categorization under the cleaning services. Further, the activities undertaken by the appellant do not constitute cleaning service, but the same are basically for removing of spillage for re-use in the conveyer bells installed in the mines. Thus, the service tax demand on the first category of service will not fall under the purview of cleaning service . Erection and commissioning of pipe lines - Held that - the work order was issued by M/s. RSWML for carrying out the activities by the appellants during the period 24.02.2004 to 8.4.2004. Installation service was brought into the statute book w.e.f. 10.09.2004 by Section 90 of the Finance (No.2) of the ACT, 2004. Since the period involved in this case is prior to the effective date i.e. 10.09.2004, the services provided by the appellant for erection and commissioning of pipe lines will not be subjected to levy of service tax under the category of erection, commissioning or installation service . Man power and supply services - Held that - Since the primary conditions in the work order is for operation and installation of the pumps and not for supply of man power, we are of the view that service tax demand confirmed by the authorities below under the category of manpower supply services will not stand for judicial scrutiny. Commercial or industrial service - barbed wire fencing for plantation - Held that - the facts are not under dispute that the said activities are not related to the commercial plantation or industrial services . Rather, for the purpose of beautification or prevention from pollution, the barbed fencing were erected by the appellant. Since the activities are not in relation to the commercial or industrial service , the service tax demand confirmed under that category of service will also not be sustainable. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Service tax demand on cleaning services, installation and commissioning services, manpower supply services, and commercial or industrial construction services.

Cleaning Services:
The appellant provided services within mines for removal of spillage material, not falling under "cleaning services" as per the Commissioner's classification under Section 65(24b) of the Finance Act, 1994. The activities were for reuse in conveyer belts, not cleaning for maintenance purposes.

Installation and Commissioning Services:
The work order for pipe lines was issued before the effective date of the "installation service" provision. Therefore, services provided for erection and commissioning of pipe lines were not subject to service tax under the category of "erection, commissioning, or installation service."

Manpower Supply Services:
The work order focused on operation and installation of water pumps, not specifically for the supply of manpower. As the primary condition was for pump operation, the service tax demand under "manpower supply services" was deemed unsustainable.

Commercial or Industrial Construction Services:
The barbed wire fencing erected by the appellant was not related to commercial or industrial services but for beautification or pollution prevention purposes. Therefore, the service tax demand under this category was also found to be unsustainable.

The Tribunal found no merit in the impugned order and allowed the appeal in favor of the appellant after setting aside the same.