9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (9) TMI 1493 - AT - Service TaxLevy of service tax - operation and maintenance repair of the Ropeway - Activity of maintenance of the battery-operated vehicle and existing road train and prevailing track in the Science City Authority - Operation and maintenance of external coal handling system - Service tax under Reverse Charge Mechanism on Rent a cab Security Service Works Contract Service Manpower Recruitment Service Legal Services - Demand of service Tax on the operation and maintenance repair of the Bridge at Jaleswar - Denial of CENVAT Credit utilized for discharging the Service Tax Liability - non-payment of service tax on advances - Reversal of CENVAT on account of non-payment to supplier/contractor. Operation and maintenance repair of the Ropeway - HELD THAT - It is observed that the appellant was awarded the right to operate and maintain the ropeway for which a license fee was paid to the respective state governments. A perusal of the agreements executed by the appellant with the respective state governments clearly reveal that the appellant operated the Aerial Ropeway by charging value of tickets from the riders of the ropeway. They paid yearly license fee at specific rate to the respective governments of Sikkim and Jharkhand. Rest of the money earned is appropriated by them for operation and maintenance of the said Ropeway - the appellant has rendered the service of transportation of passengers by Rope Way which has been specifically exempted from payment of service tax. The activities undertaken by the Appellant by way of transportation of passengers by ropeway was not taxable under any of the category under the positive list and was exempted under Serial No. 23(c) of N/N. 25/2012 ST dated 20.06.2012 under the negative list regime - the demands of service tax confirmed on this count are not sustainable. Activity of maintenance of the battery-operated vehicle and existing road train and prevailing track in the Science City Authority - HELD THAT - The appellant was entrusted with the task to collect money from the visitors by selling tickets and giving a part of it to Science city authority as royalty. Thus the money has been collected only for allowing the visitors in to the science city which is not a taxable service. The said activity was not taxable under any of the category under the positive list and was exempted under Serial No. 23(c) of Notification No.25/2012-ST dated 20.06.2012 under the negative list regime. Accordingly the demands of service tax confirmed on this count in the both the orders is not sustainable. Operation and maintenance of external coal handling system - HELD THAT - The activities of the appellant relating to transportation of coal in a specific manner and at a specific point cannot be considered as infrastructural support and maintenance services. In this regard reliance placed on the Board Circular No. 232/2/2006 CX 4 dated 12.11.2007 wherein it has been clarified that if transportation of coal is undertaken by mechanical systems such as ropeway system no service tax would be chargeable. It is further observed that the appellant started paying service tax w.e.f. 01-07-2012 on the entire activity undertaken by them and have paid Rs.42, 95, 835/-(through Cash of Rs.36, 36, 634 and CENVAT Credit of Rs. 6, 59, 201 out of the total demand of Rs.54, 12, 061/-. However the adjudicating authority failed to adjust this amount against the demand confirmed. Since there is no service tax payable for the period prior to 01.07.2012 and appropriate service tax has already been paid by the appellant for the period after 01.07.2012 there is no further liability on the appellant. However the issue is remanded back to the adjudicating authority for verification and confirmation of payment of Rs.42, 95, 835/- as claimed by the appellant. Service tax under Reverse Charge Mechanism on Rent a cab Security Service Works Contract Service Manpower Recruitment Service Legal Services - HELD THAT - The appellant claimed that they have already paid the total amount of Service Tax of Rs. 1, 45, 860/- along with interest of Rs. 44, 853/-. It is observed that there is no suppression of facts in this case and the intention to evade payment of tax has not been established. Since the entire demand confirmed in the impugned order is paid along with interest no penalty imposable on the appellant. Accordingly the penalty equal to the tax confirmed on this count is set aside. Demand of service Tax on the operation and maintenance repair of the Bridge at Jaleswar - HELD THAT - It is observed that the said service related to maintenance of bridges and thus are exempted from payment of service tax. Accordingly the demand confirmed on this count is set aside. Denial of CENVAT Credit utilized for discharging the Service Tax Liability - non-payment of service tax on advances - Reversal of CENVAT on account of non-payment to supplier/contractor - HELD THAT - It is observed that the appellant has not produced the relevant documents earlier. Now they claim that they have the documents with them readily and if the issue is remanded back to the adjudicating authority they will be able to explain the issue. Accordingly these issues are remanded back to the adjudicating authority for the purpose of verification of the documents and pass an appropriate order regarding eligibility of the credit. Appeals disposed off.
Issues Involved:
1. Demand of Service Tax on operation and maintenance of the Ropeway from Deorali Bazar to Secretariat (Tashiling), Gangtok. 2. Demand of Service Tax on operation and maintenance of the Ropeway at Trikut Hill, Deoghar. 3. Demand of Service Tax on operation and maintenance of battery-operated vehicles and road train in Science City. 4. Demand of Service Tax on operation and maintenance of the external coal handling system at Heavy Water Plant, Manuguru. 5. Service tax liability under Reverse Charge Mechanism (RCM) on various services. 6. Demand of Service Tax on advances received against various projects. 7. Demand of Service Tax on operation and maintenance of the Bridge at Jaleswar. 8. Denial of CENVAT Credit utilized for discharging Service Tax Liability. 9. Reversal of CENVAT credit on account of non-payment to supplier/contractor. Detailed Analysis: 1. Demand of Service Tax on Operation and Maintenance of Ropeway (Deorali Bazar to Secretariat, Gangtok): The appellant argued that they operated the ropeway by charging ticket fees from riders and paid a license fee to the Government of Sikkim. The Tribunal observed that the service of transportation of passengers by ropeway was exempted under Serial No. 23(c) of Notification No. 25/2012 ST dated 20.06.2012. Consequently, the demands of service tax on this count were not sustainable and were set aside. 2. Demand of Service Tax on Operation and Maintenance of Ropeway (Trikut Hill, Deoghar): Similar to the first issue, the appellant operated the ropeway by charging ticket fees and paid a license fee to the Government of Jharkhand. The Tribunal noted that the service was exempted under the same notification, and hence, the demands of service tax on this count were also set aside. 3. Demand of Service Tax on Operation and Maintenance of Battery-Operated Vehicles and Road Train in Science City: The appellant collected money from visitors by selling tickets and paid a part as royalty to the Science City Authority. The Tribunal found that this activity was not taxable under the positive list and was exempted under the negative list regime. Therefore, the demands of service tax on this count were set aside. 4. Demand of Service Tax on Operation and Maintenance of External Coal Handling System: The essence of the contract was transportation of coal, and the appellant paid service tax on the maintenance part of the activity. The Tribunal relied on Circular No. 232/2/2006 CX 4, which clarified that transportation of coal by mechanical systems was not chargeable to service tax. The Tribunal remanded the issue back to the adjudicating authority for verification of the payment of Rs. 42,95,835/- claimed by the appellant. 5. Service Tax Liability under Reverse Charge Mechanism (RCM): The appellant had already paid the total amount of service tax along with interest. The Tribunal observed no suppression of facts or intention to evade tax and held that no penalty was imposable. The penalty equal to the tax confirmed was set aside. 6. Demand of Service Tax on Advances Received Against Various Projects: The appellant requested remanding the issue to the adjudicating authority for verification of documents. The Tribunal remanded this issue back to the adjudicating authority for verification and appropriate order. 7. Demand of Service Tax on Operation and Maintenance of the Bridge at Jaleswar: The Tribunal observed that the service related to maintenance of bridges was exempt from payment of service tax. Accordingly, the demand on this count was set aside. 8. Denial of CENVAT Credit Utilized for Discharging Service Tax Liability: The appellant claimed to have the necessary documents for verification. The Tribunal remanded the issue back to the adjudicating authority for verification and appropriate order. 9. Reversal of CENVAT Credit on Account of Non-Payment to Supplier/Contractor: Similar to the denial of CENVAT credit, this issue was also remanded back to the adjudicating authority for document verification and appropriate order. Conclusion: The Tribunal set aside the demands of service tax on several counts, including the operation and maintenance of ropeways, Science City vehicles, and the bridge at Jaleswar. The issue of service tax on the external coal handling system was remanded for verification of payments made. The Tribunal also remanded issues related to denial and reversal of CENVAT credit for further verification by the adjudicating authority. The appeals were disposed of on these terms.
|
