2018 (2) TMI 1412

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....ngaged in providing various taxable services, mainly in pursuance of contractual arrangements with Indian Railways and Catering Tourism Corporation Limited (IRCTC). After conducting audit of the accounts of the appellant, the Revenue entertained a view that they are not discharging Service Tax on certain activities undertaken/considerations received. Accordingly, proceedings were initiated against them to demand Service Tax which was not paid for the period April, 2005 to March, 2011, by way of issue of two SCNs. Both the notices were adjudicated resulting in the present impugned order. The original authority confirmed tax liability under various categories and also imposed penalties under Section 76, 77 and 78 of the Finance Act, 1994. A t....

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.... to be considered as object on the premises for Indian railway holding railway coaches and contracts constituents of capital assets and machinery of Indian railway, the original authority held cleaning of such railway coaches will be considered as cleaning of commercial premises. The coaches are rolling stock of railways. They are for transport mode and cannot fall under the commercial object of industrial building, factory, plant or machinery, etc. The interpretation of the original authority is far fetched and not sustainable in view of the plain meaning of the statutory definition for tax entry. ii) Supply of Bed Rolls to Passengers of Railways (Rs.14,87,724/-) We note that the original authority confirmed service tax liability on th....

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....h the claim of the appellant. The jurisdictional authority can verify the documents to satisfy the correctness of quantification of tax liability as claimed by the appellant iv) Supply of newspaper to passengers in Rajdhani train (Rs.2,37,841/-) The appellants supplied newspapers to the passengers in selected trains. It is part of their overall contracts involving supply of food, refreshment, etc. The original authority held that supply of newspapers is in relation to outdoor catering, as such, the same is liable to be taxed as part of outdoor catering service. He relied on the principle of classification of taxable service in terms of Section 65 clause 2 sub-clause (b) of the Finance Act, 1994. We note that the original authority grossl....

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.... extended period on the ground that the appellants contravened the provisions of Finance Act and Rules with an intention to evade payment of duty. We note that the tax liability with reference to service rendered to railway/railway passengers has been a subject of substantial litigation. In fact, the Railways resisted the service tax applicability by repeated representations to the Ministry of Finance. Hon'ble Delhi High Court, while examining of dispute between IRCTC and Government of NCT Delhi-2010 (20) STR 437 Delhi, held that for supply of goods in the Indian railways, there is no element of service tax at all. The Hon'ble Delhi High Court interpreted the provisions of VAT and Service Tax under outdoor catering service. The Board, vide ....