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TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 241
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....ef facts are that the assessee is engaged in various services like Maintenance or Repair Services, Business Auxiliary Services, Outdoor Catering Services, Cargo Handling Services, Security Agency's Services, Courier Services, Cleaning Services etc. On verification of records, it was noticed that the assessee had realized an amount of Rs. 63,90,740/- for the cleaning services rendered to the Child Trust Hospital but had not discharged the service tax of Rs. 7,64,467/- on such amount. Further, it was noticed that the assessee had availed abatement of 50% in regard to outdoor catering service under Notification 1/2006-ST dated 1.3.2006. Even though they had availed the benefit of notification, they had also availed CENVAT credit in a consolida....
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..... The said hospital is a non-commercial trust with no commercial motive involved. He relied upon the CBEC circular in F. No. B1/6/2005-TRU dated 27.7.2005. He submitted that as per para 9.3, the cleaning services provided in relation to agriculture, horticulture etc. in respect of non-commercial building and premises thereof is not covered within the purview of service tax under this category. Adverting to para 9.2 of the said circular, he argued that only the cleaning services in respect of the commercial buildings such as multiplexes, shopping complex, office complex and industrial buildings would be covered by the levy of service tax. The hospital being a charitable trust is a non-commercial building. The assessee is not liable to pay se....
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....ut services like telephone services, courier services, security services are common input services used for providing output service of outdoor catering service. As per Rule 6(5) of CCR, 2004, courier services would be covered and the same can be availed as common input services when they are rendering both taxable and exempted services. That the two common input services like telephone services and security services which were availed by them were in respect of other taxable services provided by them to which they are fully eligible under CCR 2004 subject to compliance with Rule 6 of the said Rule which they had complied with. That Notification 1/2006 did not bar availing the credit which are otherwise permitted under CCR, 2004. He thus ar....
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.... both sides. 8. The first issue is with regard to the demand of service tax on cleaning services. The Commissioner (Appeals) has set aside the demand observing that the Child Trust Hospital for which the assessee has rendered the services is a non-commercial building. In Circular dated 27.7.2005 referred above, it is seen that the cleaning services in respect of non- commercial building and premises thereof would not be covered within the purview of service tax under this category. In the present case, the assessee has produced documents to show that the said hospital been given approval under section 80G(5)(iv) of the Income Tax Act for deduction in donations made to Kanchi Kamakoti Child Trust Hospital. The department merely alleges that....
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....e conclusion of the Commissioner (Appeals) that demand for the extended period cannot sustain requires no interference, so also we are of the opinion that the penalty has been rightly set aside by the Commissioner (Appeals). 10. The next issue is with regard to the appeal filed by the assessee for the demand confirmed in respect of outdoor catering service for the normal period. The assessee does not deny that they have availed common input services in the nature of telephone service, courier service and security services for providing outdoor catering service as well as other taxable services. The ld. Counsel has made a frail effort to take shelter under Rule 6(5) of CCR, 2004. The said Rule applies only in case when the common input serv....