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TMI Blog2018 (12) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... rect while holding that the Notification does not uses the word business turnover instead has used the work business entity with turnover . Hence from the plain reading of Notification and understanding of word turnover it is clear that entire proceeds of business entity has to be considered - the findings of Commissioner (Appeals) have a legal as well as genuine basis. The Commissioner (Appeals) has rightly rejected the claim - appeal dismissed - decided against appellant. - Service Tax Appeal No. ST/52546/2018 [SM] - FINAL ORDER NO. 53397/2018 - Dated:- 14-12-2018 - MRS. RACHNA GUPTA, MEMBER (JUDICIAL) Present for the Appellant: Mr. Sanjiv Agarwal, CA Present for the Respondent: Ms. Tamana Alam, DR ORDER PE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garwal, Ld. CA for the appellant and Ms. Tamana Alam, Ld. DR for the Department. 3. It is submitted on behalf of the appellant that the original adjudicating authority had rightly held that the appellant-claimant has received the legal services as business entity having turnover below to ₹ 10 lakhs in preceeding financial year than the one in question. Therefore, in view of Notification No. 25, appellants were not liable to pay the service tax on these services received by them. It is further submitted that Commissioner(Appeals) has wrongly explained the definition of turnover to include the nursery sales of the appellant and while doing so has formed a wrong opinion that the turnover of the appellant is more than ₹ 10 lakhs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed. 5. After hearing both the parties and observing the entire findings as well as the Orders of adjudication Authorities below, I am of the opinion as follows: Appellant herein is a Private Limited Company. It initially got a project to develop a land adject to Mansagar Lake in Jaipur and a licence to restore and reuse of Jal Mahal monument both being the places of tourist attraction. However, the projects got stayed due to various litigations. Meanwhile the appellant continued carrying the activity of site restoration and development including the plantation activities. The plants developed were also sold to the citizens of Jaipur. In addition, the appellant was having earnings from machine hire which though was for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n defined in the Finance Act, 1994 under Section 65(19)(b) thereof to include an association of persons, body of individuals, company or firm except an individual. The appellant admittedly is a Private Limited Company hence qualifies the definition and thereby the first condition of the Notification. 6. Coming to the fulfilment of second condition, it is observed that term turnover has not been defined in either Finance Act, 1994 or in Central Excise Act, 1944. Though Commissioner(Appeals) has relied upon the definition of turnover as given in Section 2(91) of the Company Act, 2013 and that the said Act is not pera materia to any of the above mentioned acts. The contentions of the appellant to that extent is acceptable that different s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome is opined to be a wrong interpretation. As discussed above, neither the definition of business entity nor that of turnover creates a distinction between taxable and the non taxable income. Resultantly, the net aggregate thereof has to be taken while calculating the turnover of the business entity. The Commissioner(Appeals) is opined to be correct while holding that the Notification does not uses the word business turnover instead has used the work business entity with turnover . Hence from the plain reading of Notification and understanding of word turnover it is clear that entire proceeds of business entity has to be considered. In my opinion, the findings of Commissioner (Appeals) have a legal as well as genuine basis. Also to my o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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