2026 (2) TMI 785

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....e that a Show Cause Notice dated 11.03.2020 was issued to the appellant for the period 2014-15 proposing demand of Service Tax of Rs. 6,65,529/- along with interest and penalty. The demand was confirmed by the lower authorities. Aggrieved by the same, the appellant has preferred the present appeal. 3. The learned Counsel for the appellant submits that the appellant was engaged in providing horticulture services such as upkeep of gardens by watering, sweeping, fertilization, spraying of insecticides, etc., which are exempt from payment of Service Tax. In support, reliance is placed on the decision of the Tribunal in the case of CCE & ST Ahmedabad-III v. Murlidhar Horticulture Pvt. Ltd. It is submitted that out of the total turnover of Rs.....

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....in horticulture activities such as garden maintenance, watering, and allied services. I find that the issue is no longer res integra. The Ahmedabad Bench of the Tribunal in the case of CCE & ST Ahmedabad-III v. Murlidhar Horticulture Pvt. Ltd. 2019(27) GLST 377 (Tri-Ahmd), has held as under : "5. Heard both the sides and perused the records and documents. We find that in the present case the respondent were undertaking activity of Plantation of trees, shrubs etc., Horticulture cleaning daily of garden and removal of leaves and unwanted vegetation, application of farm yard manure, application of fertilizers, edging of lawn, flower beds and weeding regularly, plant protection by using suitable insecticides and pesticides, pruning of ....

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....rvices by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce," The word Agriculture has been defined in Section 65B(3) of the Finance Act, 1994 as - "Agriculture" means the cultivation of plants and rearing of all life forms of animal, except the rearing of horses, for food, fiber, fuel, raw material or other similar products. Section 66D(d) exempts the services related to production of any agriculture produce including cultivation, harvesting, threshing plant protection. Thus the cultivation of plants and its protection is also included in Agriculture. The term "Horticulture" means to provide for plant conservation, landscape restoration, la....

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....ss and it covers horticulture which in turn cover the gardening also. In case of Puran Singh M. Verma v. CIT the Hon'ble Gujarat High Court while interpreting the term "agriculture income" has held that if the basic operation such as cultivation of land weeding, watering, manuring etc. are undertaken, the same would qualify under the term "agriculture". In our view looking to the nature of activity performed by respondent as described above since they have undertaken such operations hence their activity would fall under the definition of "Horticulture". In case of Kasturi (Dead) by Lrs v. Gaon Sabha - (1989) 4 SCC 45, the Hon'ble Apex Court has held that - "The definition of land in the Act is wide and in paragraph 4(d) the admitted positio....

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....6,924/-. The appellant succeeds both on merits as well as on account of time bar to this extent. 9. Coming to the turnover of Rs. 16,84,665/- relating to manpower supply services for the period October 2014 to March 2015, I find that the appellant has partly discharged the tax liability during the relevant period. However, there remains a short payment of Rs. 12,870/-. I hold that the plea of limitation is not acceptable in respect of this amount, since this emanates from improper calculation of the tax by the appellant and they have been paying the Service Tax in the normal course for rendering this service. At the same time, I do not find any evidence on record establishing deliberate suppression or wilful misstatement with intent to e....