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TMI Blog2024 (6) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... ; On perusal of agreement entered into with Nasik Tharmal Power Station, we find that the Cleaning services which were expected out of appellant is very clear that there is no doubt the appellant has been awarded contract for Cleaning of plant machinery, buildings, ete. At the same time, we also find that the contract which is awarded to the appellant, also has elements of loading and unloading of Coal, to our mind, value in respect of such loading and other activities may not be covered under the category of Cleaning Agency Services.' The appellants are liable to pay service tax on cleaning services rendered to Guru Gobind Singh Super Thermal Plant. Extended period of limitation - HELD THAT:- To sustain a show cause notice beyond the normal period of limitation and up to a period of five years, it has to be established that the service tax has not been paid or short-paid, by reasons of either fraud or collusion or willful misstatement or suppression of facts or contravention of any provision of the Finance Act or the Rules made there under, with intent to evade payment of tax. Further, it is found that in the present case the appellant was under a bonafide belief that service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Commissioner (Appeals) 02. Routine cleaning of trash rack, intak structure, forebay acs at GGSSTP Ropar Oct 06 to Feb 08 Demand dropped by Commissioner (Appeals) 03. Cutting and cleaning of wild growth in plant area except area behind LDO pump house, upkeeping and mtc of flower beds and area on north sides of road from round about to service building at GGSSTP Roopnagar Apr 07 to Mar 10 Demand dropped by Commissioner (Appeals) 04. Cleaning of all boiler floors LDO/HPS/pump house stage-I to III and cleaning/water washing bottom ash hooper area, ash slurry, pump house area under FD/PA fan ducts Id fan area stage I to III Feb 07 to Aug 08 Demand upheld by Commissioner (Appeals) 05. -do- Feb 09 to Mar 10 Demand upheld by Commissioner (Appeals) 2.1 Further the Ld. Commissioner (Appeals) has also allowed the cum-tax benefit to the appellant. The Commissioner (Appeals) has upheld the demand of Rs. 4,46,562/- along with interest and penalty under Section 77 and 78 of the Finance Act. 3. Heard both the parties and perused the material on record. 4. The Ld. Counsel for the appellant submits that the impugned order is not sustainable in law as the same has been passed without properly app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es like would be commercial and builders would be subjected to service tax. 6. He further submits that the contention of the appellant that the services provided to Guru Gobind Super Thermal Plant which is not a commercial concern does not hold good in view of the decision of the Tribunal in the case of B.M. Chapalkar and Company Vers. Commr. Of C. Ex. Cus., Nashik- 2016 (41) S.T.R. 548 (Tri.-Mumbai). He also submits that the cleaning service even if it is non-technical is liable to service tax. Reliance is placed on the case law laid down in Sarovar Hotels Pvt. Ltd. Versus Commr. of Cus., C. Ex. S.T., Hyderabad-IV-2018 (19) G.S.T.L. 650 (Tar - Hyd.). 6.1 Ld. AR also relied upon the decision in the case of Nirmal Construction Co. Versus Commr. Of C. Ex. S.T., Vadodara-II-2022 (63) G.S.T.L. 320 (Tri.-Ahmd.). Ld. AR further submits that extended period has rightly been invoked as the appellant did not get the registration and was not paying the service tax and was also not filing the returns, in support of this submission, he relied upon the following decisions: Talera Logistics Pvt. Ltd. Vs. Commissioner 2014 (35) S.T.R. J 182 (S.C.) Espn Softeare India (P) Ltd. Versus Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, including exterior window cleaning using swing stages would be liable to service tax; (iii) Floor cleaning and waxing, wall cleaning etc performed on the premises of commercial or industrial buildings, (iv) Specialized cleaning services such as cleaning services for computer rooms, cleaning of machinery or plant reservoirs and tanks of commercial or industrial buildings, furnace and chimney cleaning services and similar services. 9.3 However, such cleaning services in relation to agriculture, horticulture, animal husbandry or dairying would be excluded from the purview of service tax. Further, such cleaning services in respect of non-commercial buildings and premises. The question is whether the building of ISB can be considered as non-commercial building or commercial building. It is not in doubt that Indian School of Business is registered as teaching management. This activity of the Indian School commercial institution engaged a company under the Companies Act and is engaged in the business of Business does not make it a non-commercial in Institution it is a in the business of providing management education. They would have been covered under the Commercial Training and Coac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agreement entered into with Nasik Tharmal Power Station, we find that the Cleaning services which were expected out of appellant is very clear that there is no doubt the appellant has been awarded contract for Cleaning of plant machinery, buildings, ete. At the same time, we also find that the contract which is awarded to the appellant, also has elements of loading and unloading of Coal, to our mind, value in respect of such loading and other activities may not be covered under the category of Cleaning Agency Services. While upholding the demand raised under the category of cleaning services, we remand the matter back to the adjudicating authority for limited question of requantification of the demand, interest and penalties by reduction of the value indicated for loading and unloading of coal, movement of coal etc. Further in the case of Sarovar Hotels Pvt. Ltd in (para 8) cited (Supra), the Tribunal has held as under: The question is whether the building of ISB can be considered as non- commercial building or commercial building. It is not in doubt that Indian School of Business is registered as a company under the Companies Act and is engaged in the business of teaching manage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transport of passengers, freight, advertising, etc. Similarly electricity distribution/transmission is a vital public utility which is subjected to service tax. However, exemptions are selectively provided for some of the organizations involved in providing such service. 11. In view of our discussion above, we are of the considered view that the appellants are liable to pay service tax on cleaning services rendered to Guru Gobind Singh Super Thermal Plant. 12. Now, coming to the question of limitation, we find that in the impugned order service tax demand has been confirmed by invoking the extended period of limitation as provided in Section 73(1) of the Finance Act. In this regard, it is to be seen that extended period of limitation can been invoked in case where any service tax has not been paid or short paid by reason of- (a) fraud; or (b) collusion; or (c) willful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax 13. The perusal of the above provision indicates that to sustain a show cause notice beyond the normal period of limitation and up to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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