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of <h1>Tribunal grants full waiver on service tax, interest & penalties for services to charitable hospitals</h1> <h3>M/s MALTANB CONSTRUCTION ENGINEERS (P) LTD. Versus COMMISSIONER OF CENTRAL EXCISE, CUSTOMS & SERVICE TAX, COIMBATORE</h3> The Tribunal ruled in favor of the applicants, granting a 100% waiver of pre-deposit of service tax, interest, and penalties during the appeal process. ... Cleaning Services - Rendering to charitable hospitals and educational institutions - Circular No.80/10/2004-ST, dated 17.09.2004 - Held that:- As per the Board's Circular No.80/10/2004-ST, dated 17.09.2004, wherein construction of civil structure, which are being used for religious, charitable, health, sanitation and not for the purpose of profit are not taxable has been clarified. As the applicants have provided the Cleaning Service to Charitable Hospital, prima facie , relying on the above cited board's circular, we find that the applicants have made out a case for 100% waiver of pre-deposit. in favour of assessee Issues:1. Liability to pay service tax on cleaning services provided to educational institutions and charitable hospitals.2. Interpretation of Board's Circular No.80/10/2004-ST regarding taxability of services provided to charitable hospitals.3. Waiver of pre-deposit of service tax, interest, and penalties during the pendency of the appeal.Analysis:1. The applicants were engaged in providing cleaning services to charitable hospitals and educational institutions during the impugned period. A show-cause notice was issued by the Revenue for demanding service tax on these services under Section 65 (24b) of the Finance Act, 1994. The adjudicating authority dropped the demand for services provided to educational institutions but confirmed the demand for services provided to charitable hospitals. The applicants appealed this decision seeking a waiver of pre-deposit.2. The Tribunal, in its judgment, referred to Board's Circular No.80/10/2004-ST, dated 17.09.2004, which clarifies that construction of civil structures used for religious, charitable, health, sanitation purposes, and not for profit, are not taxable. Considering this circular, the Tribunal found that the applicants provided cleaning services to a charitable hospital, which falls under the category of services not taxable as per the circular. Therefore, the Tribunal granted a 100% waiver of pre-deposit of service tax, interest, and penalties during the appeal process.3. In conclusion, the Tribunal ruled in favor of the applicants, waiving the requirement of pre-deposit of service tax, interest, and penalties, and stayed the recovery of these amounts during the pendency of the appeal. This decision was based on the interpretation of the Board's circular regarding the taxability of services provided to charitable hospitals, which exempted such services from taxation if they were for charitable purposes and not for profit.
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