2024 (1) TMI 1057

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ax for extended period, not extending cum duty benefit and Imposition of penalties under Section 77 and 78 of the Finance Act, 1994. Revenue has also filed appeal against dropping of demand in respect of services provided to Indian Railways. 2. Learned counsel for the Prabhakar Enterprise pointed out that the proceedings were initiated on the basis of the 26AS statement of income tax and balance sheet of the appellant. The appellant rendered services of cleaning, house-keeping and manpower supply to Indian Railways, Airport Authority and also provided to SEZ Units. Demand was partly confirmed by the original adjudicating authority. Benefit of exemption was granted in respect of the services provided to Railways. This was challenged by Re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r a governmental authority by way of- (a) Carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation;" The said notification defines 'Government Authority' as follows: (s) "governmental authority" means a board, or an authority or any other body established with 90% or more pariticipation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243 W of the Constitution;" 4. It has been argued by Revenue that Indian Railways are not perf....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rder both sides are in appeal. Revenue has filed appeal against the dropping of demand of service tax on the services provided to railways. Prabhakar Enterprises has filed appeal against invocation of extended period of limitation and imposition of penalty under Section 77 and 78. 6. While various arguments have been raised by Revenue as to why the Commissioner should not have dropped the demand during the course of hearing attention was drawn to the following decisions. • Mukesh Kalway 2017 (3) GSTL 183 (Tri. Del.) • Sarovar Hotels Pvt Ltd. 2018 (19) GSTL 650 • Dynamic Enterprises 2019 (22) GSTL 230 (Tri. Del.) 7. In all these cases the Tribunal has held that service tax is payable in respect of....