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2019 (9) TMI 1152 - HC - Service TaxMaintainability of appeal - monetary amount involved in the appeal - Levy of service tax - imposition of penalty - cleaning of railway wagons, cleaning of railway buildings and premises, cleaning and housekeeping of railway running rooms, water tightening of wagons in monsoon seasons etc. etc. - HELD THAT - Having regard to the amount which is over all amount of ₹ 72,51,533/-, and the fact that even that amount has been directed to be bifurcated, this Court is of the opinion that the appeal falls within the mandatory limit prescribed by the circular dated 22/08/2019. Appeal dismissed.
Issues:
Appeal challenging CESTAT order remitting matter for re-consideration regarding service tax liability on cleaning services provided for railway wagons, buildings, and premises. Analysis: The judgment pertains to an appeal challenging the order of the Customs Excise & Service Tax Appellate Tribunal (CESTAT), which remitted the matter for re-consideration. The issue at hand involves the service tax liability on cleaning services provided for railway wagons, buildings, and premises. The Tribunal opined that cleaning of railway wagons does not attract service tax liability. However, it directed the bifurcation of amounts determined and claimed towards cleaning of commercial/industrial buildings and railway premises. The Tribunal referred to previous decisions regarding the taxability of cleaning activities of railway premises and coaches. It was concluded that service tax levy on cleaning of railway wagons and coaches is not applicable, while cleaning of railway buildings and premises falls under the category of cleaning of commercial or industrial buildings and is liable for service tax under the Cleaning Service. The Court noted the total amount involved in the matter, which was &8377; 72,51,533, and the direction for bifurcation of the amount. Considering the amount and the bifurcation ordered, the Court found that the appeal falls within the mandatory limit prescribed by a circular dated 22/08/2019. Consequently, the appeal was dismissed based on these considerations. The judgment provides clarity on the service tax liability concerning cleaning services for different types of railway facilities, emphasizing the distinction between cleaning railway wagons and buildings/premises in terms of tax applicability.
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