Cleaning of township outside service tax cleaning activity definition; pre-deposit waived and recovery stayed.

Cleaning of a township or residential area was held, on a prima facie reading, to fall outside the statutory definition of cleaning activity under the Finance Act, 1994, because that definition is confined to cleaning of commercial or industrial buildings and premises, or specified plant, machinery, tanks or reservoirs connected with them. The assessee therefore established a strong prima facie case for interim protection. Pre-deposit of the disputed dues was waived and recovery was stayed during the pendency of the appeal.

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Issues: Whether cleaning of a township or residential area, other than a commercial or industrial building or premises thereof, falls within the scope of cleaning activity for the purpose of service tax, and whether the applicant was entitled to waiver of pre-deposit and stay of recovery.

Analysis: The definition of cleaning activity under Section 65(24b) of the Finance Act, 1994 is confined to cleaning of commercial or industrial buildings and premises thereof, or factory, plant or machinery, tank or reservoir of such buildings and premises, and excludes specified agricultural and allied services. On a prima facie reading, cleaning of a township does not fall within that definition. The applicant therefore disclosed a strong prima facie case for interim relief.

Conclusion: The issue was answered in favour of the assessee. Pre-deposit of the disputed dues was waived and recovery was stayed during the pendency of the appeal.

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