TaxTMI 
TaxTMI 
2022 (3) TMI 403
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....546/- 2 W.O.No.Ank/MM/P 4/015/2004-05 15.06.05 Clearing services as such Grass, Bush, Jungle cutting at Area-III of ONGC Ank. And regular maintenance as tender documents Aug. 05 to March 06 2023346/- 3 W.O.No.Ank/Asset/ CPF/OPS/76/Work Order/2005-06 16.09.05 Cleaning of LPG Condenser Oct 05 50000/- 4 W.O.No.Ank/Asset/ CPF/OPS/21/Filters /2005-06 22.06.05 Maintenance of sand and activated carbon filter of ETP at CPF Gandhar Oct. 05 141000/- Total 45,37,892/- 2.1 Learned Counsel pointed out that they are not contesting the demand of Service Tax on Serial No. 3 & 4 on merits, however, they are contesting the said demands on the issue of limitation. As far as Serial No. 1 of the above table is concerned the contract dated 19.09.2003, required the appellant to do the following activity:- 2.3 Learned Counsel pointed out that the demand has been made under the head of Cleaning Services are defined under Section 65 (24b) of the Finance Act, 1994 which reads as under: "25.1-1 Section 65(24b) of the Act defines 'cleaning activity as follows: (246) "cleaning activity....
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....imney cleaning services and similar services. 9.3 However, such cleaning services in relation to agriculture, horticulture, animal husbandry and dairying would be excluded from the purview of service tax further, such cleaning services in respect of non-commercial buildings and premises thereof would not be covered within the purview of service tax under this category." 2.5 Learned Counsel further pointed out that as per Serial No. 2 of the table in para 2 above is concerned the contract dated 15.06.05 described the service as follows:- 2.6 Learned Counsel pointed out that the activities relate to cutting of grass, trees and bushes and does not amount cleaning service and thus, the activity should be called horticulture and does not amount to cleaning service. He, however admitted that the premises in which the activity was being undertaken are commercial and industrial premises where natural Gas is collected by ONGC. 2.7 Learned Counsel further pointed out that though the appellant had not taken Service Tax registration and had not filed any returns but as soon as the issues was raised the appellant voluntarily admitted their liability in respect of item 3 & 4 of....
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.... within the residential colony. In the terms premises appearing in the definition of the cleaning activity under Section 65 (24b), the said Section reads as under:- "25.1-1 Section 65(24b) of the Act defines 'cleaning activity as follows: (246) "cleaning activity" means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of- (i) Commercial or industrial buildings and premises thereof; or (ii) Factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying." 5.1 It is seen that the terms premises in the definition of cleaning activity does not cover the premises of service recipients but it covers only the premises of "commercial or industrial building" or "factory, plant or machinery, tank or reservoir" of such commercial or industrial building only. It is not as if all the premises on the service recipient would be covered in the definition. All the three decisions relied upon by Revenue relate to eligibility of Cen....
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.... unwanted vegetations. removal of all debris and other unwanted materials including from storm water channel etc in commercial/industrial premises of M/s ONGC Ltd, cannot be treated as horticulture and hence appellant unit is liable to pay service tax in respect of work order dated 15.06.2005." 7. We are in an agreement with the observations of Commissioner (Appeals) and find that the activity of the appellant cannot be treated as horticulture from the description given in above para. It is apparent that the activity undertaken by the appellant is in the nature of cleaning activity and therefore covered under the definition of this service as defined in Section 65 (24b) of the Finance Act, 1994, the demand of this ground is therefore upheld. 7.1 It is seen that the appellants were not registered with the Service Tax department at the time when the case was booked against him. The appellant had immediately paid Service Tax on 2 of the 4 issues raised by authorities. Learned Counsel tried to argue that the appellant had bonafide belief that the services were not taxable. We find that as far as the activity at Serial No. 2 of the table in para 2 above is concern there is a....
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....basis or as and when required. Length of all the roads will be approx. 10 K.M. The collected garbage to be segregated in the separated to biodegradable and non-degradable waste and shifting the identified areas in the township non biodegradable garbage to be shifted out side the township area at his convenient place at his own has to provide all the materials, tools , tackles and manpower required for the job. garbage to cost. The contracte: De-silting and removing checking of all the sewage lines, drains and manhole chambers ( 500 Nos. approx.) of the township including those of the buildings. De-silting of storm water drains including clearing of pipes below culverts, removing all rubbish, grass, each and other choking materials to the identified areas in the township with all tools tackles and manpower once before rainy season and as and when required. opening the door bends of chocked W.C's/ Bathroom traps from outside the buildings for cleaning. This job also includes The collected garbage to be segregated in to biodegradable and non- degradable waste and shifting the separated garbage to....
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....val of garbage includes removal of dead bodies of animals in the ONGC Township. The contractor has to provide all the materials, tools, tackles and manpower required for the job. 1.7.3 The contractor shall catch all stray does,, pigs, cows, buffaloes etc, found inside floating materials from the manholes upto original bottom level of manholes the satisfaction of the Officer-in-charge and disposal of wage to the allocated site will be done by the contractor as per the instructions of Officer-in-charge. The contractor has to provide all the materials, tools, tackles and manpower required for the job. FOR THE ABOVE JOBS UNDER “A†MINIMUM 36 LABOURERS ARE TO BE DEPLOYED DAILY. * CS Scanned..with.... 26 CamScanner For Nirmal Construction Co. Proprietor Document 3 5343 B. GRASS/BUSH CUTTING/TREE TRIMMING 1.12 Cutting of Grass,. Bush, Shrubs & Tree trimming in all open space, wall sides including its collections and removal to the identified area in the township the all tools, tackles and manpower. The grass & wood will be property of the contractor. FOR THE ABOVE JOBS UNDER "B" MINIMUM 8 LABOURERS....
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....bs. The total area covered under the scope of work for cutting and removal of grasses and bushes etc. will be approximately 971500 m2. The quantity mentioned above are indicative only and may be decreased or increased as per the actual site requirement and the contractor shall be bound to undertake such works accordingly. Also the area/location of work, after completion of the first cutting can be changed as per the actual site requirement /situation and the contractor shall be bound to undertake such works accordingly. This willbe solely at the discretion of Engineer in Charge of GGS, Gandhar and will be binding on the contractor. Deployment of required labours /workman as per labour license obtained from the office of the labour commissioner, necessary tools and tackles and allm kinds of transport required for collection and disposal of the cut grass and other unwanted materials shall be in the scope of the contractor. Contractor will deploy at least one literate supervisor at each site for supervision of the work day to day interaction with Engineer in Charge of GGS. If the contractor fails to compl....
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....uring the monthly inspection, if the contractor fails to maintain grass level below 10 Cms. height in the specific area, the payment shall be made to the contractor only for the area maintained below 10 Cms from the ground level. However, for the area not maintained below 10 Cms, from the ground level, recovery shall be made from the respective monthly bill @ 10% of total amount of monthly bill against that particular area not maintained as per scope of work on prorate basis ad the contractor will be bound to repeat the such operations to provide the required level of the grass/weed etc. of such specific area in the period of next month. If the contractor fails to maintain grass below 10 cms in consecutive three months, the LD will be imposed on the contractor (a % of the total yearly contract value per week of delay thereafter. CS D.C. SIL ScManager (MM). ONGcanner Ltd. Ankleshwar - 26- For Nirmal Construction Co. Construction Proprietor Document 6 4232 SPECIAL CONDITIONS OF THE CONTRACT 1. Commencement date for the purpose of this contract shall be written declaration signed by....