Ash pond evacuation is not cleaning service when the activity is excavation, transport and disposal rather than statutory cleaning.

Evacuation of ash from ash ponds, including loading, nuisance-free transportation and disposal at designated sites, was held not to constitute cleaning services under the Finance Act, 1994. The Tribunal treated the contract as one for excavation, loading, transport and disposal, and found that it did not involve cleaning of any commercial or industrial premises, plant, machinery, tank or reservoir within the statutory definition. As the activity did not answer the description of taxable cleaning service, service tax could not be sustained on that basis and the demand failed.

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Issues: Whether the activity of evacuation of ash from ash ponds, together with nuisance-free transportation and disposal at the designated place, falls within the taxable category of cleaning services under Section 65(24b) of the Finance Act, 1994.

Analysis: The Tribunal followed its earlier view that the contract was essentially for excavation, loading, transportation and disposal of ash, and not for cleaning of any commercial or industrial premises, plant, machinery, tank or reservoir. The activity did not answer the statutory description of cleaning activity, since the ash was being removed for disposal at specified locations and not to clean the pond in the sense contemplated by the service tax entry.

Conclusion: The activity did not fall under the category of cleaning services and was not liable to service tax on that basis.

Final Conclusion: The demand confirmed under the impugned order could not be sustained and the appeal succeeded with consequential relief.

Ratio Decidendi: An activity primarily involving excavation, loading, transportation and disposal of ash from ash ponds is not taxable as cleaning service unless it is shown to be cleaning of the specified premises or equipment covered by the statutory definition.

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