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TMI Blog2018 (7) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax - Laundry services - Held that:- When any show cause notice is issued, the burden of alleging and proving the allegations in the show cause notice that a taxable service has been rendered is on the revenue and it is not on the assessee to prove otherwise - In this case, the words used were the ‘laundry services’ and there is no evidence or investigation report to show that under the garb of laundry services dry cleaning services were provided by the appellant and hence they are chargeable to service tax - demand withheld. Appeal allowed - decided in favor of appellant. - Appeal No. ST/31341/2017 - Final Order No. A/30649/2018 - Dated:- 26-6-2018 - Hon ble Mr. P. V. Subba Rao, Member ( Technical ) None for the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. During Audit, it was pointed out that the appellants had wrongly taken CENVAT credit on construction services. 4. During the relevant period the appellant was entitled to claim CENVAT Credit on common input services used for providing taxable as well as tax free services. Accordingly, they availed credit on common input services which were used for some taxable services as well as towards providing accommodation which was, during the relevant period an exempted service. 5. Secondly, the assessee had not discharged their full service tax liability on the accommodation services but had discharged it on an amount after deducting a notional amount towards the free breakfast which they were providing to their clients. Thirdly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The show cause notice also proposed to charge service tax on the telephone services and the laundry services provided by them and also proposed to impose penalty upon the assessee. The Learned lower authority by this Order-in-Original dated 28.09.2016 confirmed the demands along with interest and penalty as indicated in the show cause notice. 8. Aggrieved, the assessee appealed to the Commissioner (Appeals), who vide Impugned Order-in-Appeal has allowed the appeal partly, setting aside the demand on telephone services. He confirmed the rest and upheld the Order-in-Original to that extent. The present appeal is against this impugned Order-in-Appeal. 9. Learned Chartered Accountant appearing for the assessee says that in the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the audit as well as the show cause notice referred to the laundry services and not dry cleaning services. This position was not accepted by the Learned Commissioner (Appeals) stating as follows: Though the term used by the original authority is laundry services there is no record produced by the appellants that, by implication, the same did not refer to dry cleaning services which is normally a service rendered to guests in the unit of accommodation provided by the appellants. Therefore, in the absence of evidence produced by the appellants that the impugned services provided by them related only to wet washing of clothes, which was not taxable during the period, the demand of tax made cannot be held to be not correct. 11. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilization of common input services by the appellant does not disentitle them to the benefit of abatement under notification No.1/2006-ST. Thus abatement will be available on the total value of services provided by them, which in their case is the composite amount which they charge towards providing accommodation services from their clients. As far as the laundry services are concerned, it is not in dispute that they were not chargeable to tax during the relevant period. The Learned Commissioner (Appeals) has concluded that the laundry services should be taken to be dry cleaning services as the appellant has not produced any evidence to the contrary. I disagree with the Commissioner (Appeals). When any show cause notice is issued, the burde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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