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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 ..... llant demanding service tax for an amount of Rs. 9,98,918/- against services provided by the appellant to Guru Gobind Singh Super Thermal Plant under the head of cleaning services for the period 16.06.2005 to 31.03.2010. After following the due process, show cause notice was adjudicated vide Order-in-Original dated 23.09.2011 and the demand was confirmed along with interest and penalty. Aggrieved by the said order, the appellant filed the appeal before the Commissioner (Appeals) and the Commissioner (Appeals) vide the impugned order in appeal has held as under : S. No. Nature of work Period 01. Routine m/c of Ash dykes stage I, II and III. The job includes (i) filling of gharas before and after rainy season (ii) cleaning of seepage drain; (iii) leveling & draining of top surface (iv) cleaning of storm water drain etc. June 05 to Nov.06 Demand dropped 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 ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case is not pertaining to horticulture, animal husbandry or dairying services and the premises where they were providing services was a commercial concern, thus, the case of the appellant is not covered under (para 9.3) of the above circular. 5.2 He further submits that the appellant"s contention that the thermal plant was the property of the Punjab Government and hence being a public concern, no service tax was leviable, this plea of the appellant is not relevant for the instant case because as per CBEC"s circular No. 80/10/2004-ST., dated 17.09.2004 wherein it has been clarified as under : "Generally, government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally government constructions would not be taxable However, if such constructions are for local government bodies getting shops constructed for commercial purposes 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 Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 65 of the Finance Act, 1994 9.2 Generally contracts/agreements are entered into for cleaning of commercial complexes such as multiplexes, shopping complexes, office complexes, industrial buildings etc. The contracts/agreements may be in writing or may be unwritten The gross amount charged for such cleaning would be leviable to service tax. This taxable service includes, - (i) specialized cleaning services such as disinfecting and exterminating, sterilization of objects, etc. Such cleaning services would be taxable when performed for commercial or industrial buildings and their premises, factories, plant and machinery, tank or reservoir of such buildings; (ii) Disinfecting, exterminating insects, rodents and other pests and fumigation services in respect of specified premises would be liable to service tax. In respect of multi-storeyed commercial buildings, window cleaning is a specialized service. Window cleaning services, 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gory of Cleaning Agency Services and Business Support Services It is the case of the Revenue that during the period October, 2003 to March, 2008, there was an escapement of tax under Cleaning Agency Servicex, Business Support. Services and Cargo Handling Services. The adjudicating authority has confirmed demand raised on all these services. The first appellate authority has set aside the demands on Business Support Services and Cargo Handling Services but confirmed the demands under Cleaning Agency Services. 5. Learned counsel submits that the appellant has been engaged in Cleaning Agency Services and all the activities which have been awarded to them under the contract. He would take us through the contract in detail. It is his submission that the Cleaning services as to be done by the appellant would not fall under the category as it is in respect of conveyer etc. We do not agree with the contentions raised by the appellant's assessee. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e larger investments are required in providing large scale public utility service, some amount of monopolistic situation emerges in some of the cases. Necessary regulations/protections are also evolved by the Government for orderly and uninterpreted public utility service by the organizations providing the same. The term public utility itself has not been statutorily defined. In terms of Section 2(N)(VI) of Industrial Disputes Act, 1947, many industries listed in the first schedule may be declared to be public utility service by the Government. A perusal of the Schedule will show large number of activities are listed which can be declared as public utility service. These are banking, coal, cement, mining, shipping, airport authority, etc. The point to be noted is that being a public utility by itself does not provide any immunity from service tax levy. It is apparent that the railways or airport authority are being subjected to service tax under various categories like 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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