By TIOL News Service

MUMBAI, OCT 26, 2013: THE appellant had undertaken cleaning services for various educational institutions of the D.Y.Patil Group.

The Revenue took a view that this activity rendered during June, 2005 to April, 2008 is chargeable to Service Taxunder ‘Supply of Manpower Services' and raised a demand of Rs.39 lakhs.

The lower authorities got the demand cleansed by confirming the same along with penalty and interest and, therefore, the appellant is before the CESTAT with a Stay application.

The appellant submitted that the activity is excluded from the scope of cleaning service as defined u/s 65(24b) r/w s. 65(105)(zzzzd) of the FA, 1994 and hence the demand is not sustainable.

The Bench observed -

"4. We have heard both sides. We have also perused the bills raised by the appellant on the service recipient and these bills indicate that the charges have been made for cleaning work of the premises or the gardening works in the premises of D.Y.Patil Educational Institution. As per Section 65(24b), cleaning services undertaken in respect of non-commercial buildings and premises are not liable to Service tax. Similarly, such services rendered to agriculture, horticulture, animal husbandry or dairying is also excluded from the purview of Service Tax. Prima facie we find that the appellant has made out a case for waiver of pre-deposit. Accordingly, we grant unconditional waiver from pre-deposit of the dues adjudged against the appellant and stay recovery thereof during the pendency of the appeal."

In passing: Now, where do you classify this activity of issuing SCNs and passing O-i-O & O-in-A which are barely able to withstand the rigors of higher appeal - frivolous services!

(See 2013-TIOL-1588-CESTAT-MUM)