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TMI Blog2023 (1) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... l conservation and land reclamation. The appellants were not registered with service tax department. Based on Intelligence the Directorate General of Goods and Service Tax Intelligence officers visited the appellants premises and conducted certain investigation. After the investigation SCN was issued to the appellant seeking to demand of service tax under the category of Business Auxiliary Service, supply of tangible goods service and rent a cab service. 2.1 Learned Counsel argued that the main purpose of creation of the said public sector undertaking was to assist government in its effort for soil conservation and land reclamation. The activity was funded by government and certain funds were given to the appellant for conducting such activities . 2.2 Learned counsel pointed out that the state government releases the grants every year to carry out such activities for which the appellant do not charge any amount from farmers who are the beneficiaries of the scheme. The appellants have many offices situated at various district and taluka level. The appellants have no independent source o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service. The next issue raised in the proceeding relates to provision of rent a cab service. Learned counsel pointed out that employees of the organization are provided with official vehicles . However if and when the said official vehicles are used for private purpose then certain amount is charged to the appellant. It was argued that simply charging the employees for private use of official vehicle does not amount to provision of rent a cab service. He further pointed out that the impugned order also does not give any reason as to how this amount collected from the employees for private use of vehicle amounts to the provision of rent a cab service . 2.6 Learned counsel further pointed out that the appellants are Government entity and therefore cannot be any suppression, misdeclaration etc on the part of the appellant with the intention of evasion of duty. He pointed out that extended period of limitation has been invoked wrongly in the instant case. Serial No. 12 and 25 of the Notification 25/2012 dated 20.06.2012 grants exemption to specified services provided to government, a loc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule ( Article 243 W) 1. Urban planning including town planning. 2. Planning of land- use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities includind street lighting, parking lots, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of soil conservation and land reclamation. Notification No 25/2012 provides exemption to specified service including conservancy. The term "conservancy" is defined by the Merriam Webster dictionary as follows:- "Plural Conservancies 1. British : a board regulating fisheries and navigation in a river or port 2. a: CONSERVATION b: an organization or area designated to conserve and protect natural resources" The Britannica Dictionary defines conservancy as follows:- "1 [count] : an organization that works to protect animals, plants, and natural resources especially by purchasing and caring for areas of land - usually used in the names of organizations 2 [count] British : a group of officials who control and protect a river or port 3 [non count] : conservation * * raising money for the conservancy of natural resources * water conservancy" In terms of above definition the activity of soil conservation and land reclamation would be fall under the terms "conservancy". 4.2 In view of above the activity undertaken by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant in regard to supply of tangible goods service. Demand on this count is also set aside and appeal is allowed. 6. The next issue is relates to the demand under the category of rent-acab service. It has been argued by the learned counsel that the amount on which service tax sought to be recovered is the amount recovered from the employees when the official vehicles are put to personal use by the employees. It has been argued that the appellants are not rent-a-cab operator and are not in the business of giving vehicles on hire. It has been argued that as per the policy of government employees on given certain benefits and one such benefit is permitting an employees to use the vehicle of appellant for private use upon certain payments. It has been argued the vehicle are not given to the public at large but only to employees in terms of the employment agreement. We find that substantial force in the argument of the appellant that this is not a service provider/ service recipient relationship. The appellants are not in the business of rent - acab providing rent a cab service and any recover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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