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2023 (12) TMI 178 - AT - Service TaxNon-payment of service tax - service provided to G. P. Pant Hospital (GPPH) and Maulana Azad Institute of Dental Sciences (MAIDS) located in New Delhi - benefit of Notification No. 25/2012-ST dated 20.06.2012 (Sr. No. 25) availed - non-payment of service tax in respect of the taxable services provided to M/s Cummins Technology India Ltd. SEZ Unit as well - Services provided to Government, a local authority or a governmental authority - Public health services. Service provided to G. P. Pant Hospital (GPPH) and Maulana Azad Institute of Dental Sciences (MAIDS) located in New Delhi - HELD THAT - The period of dispute involved in this case is from 2009-10 to 2014-2015. In exercise of the powers conferred under Section 93 of the Finance Act, 1994, the Central Government had issued the Notification No.25/2015-S.T. dated 20.06.2012 in exempting various taxable services from payment of Service Tax. The two hospitals in this case viz., GPPH and MAIDS are run by the Government of N.C.T. We have examined the agreements entered into between the Appellant and G. B. Pant Hospital, Government of N.C.T., New Delhi. Such agreement was entered into by the service recipient on behalf of the President of India, meaning thereby that the said hospital is a Government Hospital. Since, the appellant is a provider of the taxable service, and has provided services to the government authority, such services were exempted in view of the Notification dated No.25/2015-S.T. dated 20.06.2012. However, for the subsequent period w.e.f. 11.07.2014, there was confusion inasmuch as the phrase provision of service to the Government was not specifically finding place in such amended Notification. The recipient of service in this case since is a Government body, the services provided by the Appellant, should also be considered for exemption in terms of both the un-amended Notification dated 11.07.2014 and the subsequent Notification dated 11.07.2014. Services provided by the Appellant to M/s Cummins Technology India Ltd - HELD THAT - It is an undisputed fact that such unit is located in the Special Economic Zone (SEZ). In respect of claiming exemption for payment of service tax on the services provided to SEZ Unit/Developer, the Notification No. 09/2009-S.T. dated 03.03.2009 as amended, in explicit terms provides that the services provided to the SEZ should be considered to grant of the benefit of exemption - In the case in hand, since the appellant had in fact provided the services to an unit of SEZ unit, in our considered view the benefit of the exemption provided under the Notification dated 03.03.2009 should also be available. Thus in this connection, there are no merits in the impugned order passed by the learned Commissioner (Appeals). The impugned order passed by the learned Commissioner (Appeals) is set aside - Appeal allowed.
Issues Involved:
The judgment involves issues related to service tax liability on cleaning services provided to government hospitals and services provided to a Special Economic Zone (SEZ) unit. Issue 1: Service Tax Liability on Cleaning Services Provided to Government Hospitals The appellant, engaged in providing taxable cleaning services, was alleged to have not paid service tax on services provided to G. P. Pant Hospital (GPPH) and Maulana Azad Institute of Dental Sciences (MAIDS) due to an exemption under Notification No. 25/2012-ST. The department initiated show cause proceedings covering the period from 2009-10 to 2015. The Central Government issued Notification No. 25/2015-S.T. exempting services provided to the government. The hospitals in question were run by the Government of N.C.T., making them government hospitals. The Ministry of Finance clarified that services to the government would remain exempted. The tribunal held that services provided to government hospitals were exempt from service tax under both the original and amended notifications. The impugned order confirming the demands was set aside. Issue 2: Service Tax Liability on Services Provided to a Special Economic Zone (SEZ) Unit The appellant provided services to M/s Cummins Technology India Ltd., located in an SEZ. The Notification No. 09/2009-S.T. explicitly provides for exemption of services provided to SEZ units. The tribunal found that since the appellant provided services to an SEZ unit, they should be granted the benefit of exemption under the notification. Consequently, the impugned order upholding the demands was found to have no merit. The tribunal allowed the appeals filed by the appellants, setting aside the order of the learned Commissioner (Appeals).
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