TaxTMI 
TaxTMI 
2018 (5) TMI 787
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....Services etc. The dispute covers the period 2005-2006 to 2009-2010 during which the Department took the view that the various services provided by the appellant were liable to payment of service tax and after issue of show cause notice, the impugned order was passed in which total service tax demand amounting Rs. 1,04,48,970/- was confirmed alongwith payment of interest and penalties under various Sections of the Finance Act, 1994. The total demand of service tax has been made under the following categories: S. No. Description of receipts Amount received Service tax demanded as per OIO Category under which service tax confirmed Service tax paid 1 Mechanised washing and cleaning of mail express....
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.... express and passenger trains etc. Ld. Advocate submitted that the above services are not liable to service tax under the category of cleaning services as defined under Section 65 (105)(zzzd) read with Section 65 (24b) of the Finance Act, 1994 in view of the decision of the Tribunal in the case of M/s R. K. Refreshment and Enterprises Pvt. Ltd. And Another decided by the Tribunal vide Final Order No. 50298 - 50299/2018 dated 22.01.2018. Opposing the above condition, ld. AR submits that the activity involved not only covers the cleaning of railway wagon but also cleaning of various Railway premises alongwith the railway track. He submits that the Railway have been held as covered under the category of 'Commercial' and the cleaning of railway....
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....and and confirm the same only to the extent of the cleaning activity of railway premises. 5. Next we turn to Cleaning and house-keeping of railway running rooms, washing and cleaning of bed sheets, pillow covers etc. The adjudicating authority has demanded the service tax on these services under the category of management, maintenance or repair service. We have perused some of the contracts executed by the appellant with the Railway. As observed by us in the previous paragraph, cleaning and house-keeping of railway running rooms are liable to service tax under Cleaning Service. Washing and cleaning of bed sheets, pillow covers etc. are also more appropriately classified under Cleaning Services rather than under 'Management, Maintenance &....
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....e service tax demand in respect of the three categories under the maintenance, management or repair service. The tax will be liable to be paid alongwith interest, if not already done. However, since this involves interpretation and classification of the service into different categories, we are of the view that the penalty applicable on these services can be waived in respect of Section 80 if the service tax liability with interest has already been paid prior to issuance of show cause notice. 7. Now, we turn to supply, maintenance and supervision of mechanised machineries to be used for cleaning of various railway stations. The appellant has supplied the above machines to the railway and for the consideration received, the adjudicating a....