9911796707
TMI Blog2017 (5) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... presentation from the respondent. 3. On perusal of records, it transpires that the respondent herein was engaged in undertaking the work of cleaning of nullah, roadside garbage, soil etc. at designated places in Nagpur and has received payment for such activities from Nagpur Municipal Corporation (NMC) and from Kanak Resource Management Ltd. Revenue authorities were of the view that the amounts received by respondent herein for the period 2005-06 to 2009-10 is liable for service tax under the category of "Business Auxiliary Service" i.e. under the clause "any service in relation to ............provision of service on behalf of the client". Coming to such a conclusion, show-cause notice dated 16.09.2010 was issued to the respondent herein. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ublic interest and has to be undertaken as mandatory and statutory function. These are not in the nature of any service to public individual. It is the submission that in the case in hand the respondents are not a sovereign/public authority constituted under any law, but they are a Proprietorship concern and are working as a Commercial organization performing their functions/activities with a profit motive. The fees collected by the respondents are not in the nature of compulsory levy and are not deposited in the Government treasury. It is further submitted that under the category of 'business auxiliary service', the provision of service on behalf of the client does not require that the service should be in relation to any business. It mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaken by them on behalf of NMC for a fee received from NMC. We find that the claim of the respondent seems to be on a very strong footing that it cannot be disputed that cleaning of nullahs and removal of roadside garbage and waste soil is statutory function of NMC which they have outsourced to the respondent herein. Respondent is not providing any services to NMC, as the activity of cleaning of nullahs and removal of roadside garbage and waste soil is not an activity of business to NMC, and these services do not qualify as services on behalf of the client. We find that the first appellate authority has categorically recorded the findings in paragraph 28 of the impugned order which we agree to as correct. The first appellate authority ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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