TaxTMI 
TaxTMI 
2026 (7) TMI 1353
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....l No. ST/53184/2016 and ST/53061/2016 was engaged in providing Manpower Supply Services to Nagar Nigam, Jaipur. Department got an intelligence that the appellants have been collecting service tax, ESI and PF from Nagar Nigam, Jaipur. However, the said amount was not deposited by the appellant. Based on the said investigation, searches were conducted in the premises of the Authorized Signatory of the appellant's company namely Shri Deepak Jain who is the appellant in Appeal No. ST/52919/2016. Certain documents in the form of note sheets/calculation and the negotiation sheets with respect to the rates per day for sanitation purposes were recovered. From the examination thereof, it was observed that the appellant had entered into two contracts with Nagar Nigam, Jaipur. One is dated 03.02.2009 and another dated 12.12.2013, for providing the impugned services. The appellant agreed to provide the same services to SMS Medical College also vide separate agreement. The appellant however was found not registered with the service tax department. The activity of the appellant was alleged as of 'Manpower Supply Service'. Since the appellant had failed to deposit the service tax with the departm....
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....ctory to the findings based whereupon the partial demand was dropped. 4.1 Further, learned counsel has referred to the contracts with Nagar Nigam, Jaipur and with the SMS Medical College. The clause thereof clearly establishes that the services provided by the appellant were in the nature of cleaning services. The same has been accepted by the adjudicating authority also. Still the demand proposed under Section 73A has been confirmed. It has been confirmed on the basis of calculation sheets and the note sheets provided by the Nagar Nigam and recovered from the premises of Shri Deepak Jain during search proceedings dated 01.07.2014. But the invoices raised by the appellant falsify those sheets as the service tax has not been mentioned separately in the invoices. Para 17 of the agreement with Nagar Nigam, Jaipur has also been impressed upon where the parties have agreed that Nagar Nigam will not pay service tax. Based on these submissions, the confirmation of even partial demand is prayed to be set aside. The demand which has been dropped is impressed upon to be the correct finding. The services in nature being exempted. With these submissions, the appeals filed on behalf of the a....
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....er as sent by the appellant for performing those cleaning activities did not shift to Nagar Nigam. We do not find anything contrary to the said observations. Hence, it is held that activity rendered by the appellant has rightly been denied to be the 'Manpower Supply Agency' but that of cleaning activity. 8. Similarly, we are in agreement with the findings with respect to the same activity rendered by the appellant but to the SMS Medical College that the service provided is that of cleaning activity. Apparently the services provided to the governmental authorities (Nagar Nigam in this case) and the educational institutes (SMS Medical College) are exempted under Mega Exemption Notification No. 25/2012 dated 20.06.2012, the respective entries are 25 and 9. Hence, we hold that the demand of service tax of Rs.76,50,431/- has rightly been dropped by the adjudicating authority. 8.1. Coming to the part of the demand as has been confirmed in terms of Section 73A of the Finance Act, 1994 (Rs.3,37,20,192/- and Rs. 3,09,17,430/-), it is observed that the said demand has been confirmed observing that the appellants have collected service tax from Nagar Nigam as well as from the medical co....
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....service referred to in sub-section (1). (6) Where any surplus amount is left after the adjustment under sub-section (5), such amount shall either be credited to the Consumer Welfare Fund referred to in section 12C of the Central Excise Act, 1944 or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of section 11B of the said Act and such person may make an application under that section in such cases within six months from the date of the public notice to be issued by the Central Excise Officer for the refund of such surplus amount." 9. The bare perusal of 73A clause (2) makes it clear that the Section is invokable in case any person who has collected any amount which was not required to be collected, representing the same as service tax, such amount was to be deposited forthwith, with the government else a notice of demand shall be served on such person, who shall pa the such amount to the government. 10. There is the sufficient evidence as discussed by the original adjudicating authority in Para 43 to 46 thereof that the service tax was otherwise collected by the appellant. But simultaneously it....