2026 (8) TMI 1000

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....Noida. By way of impugned order, the learned Commissioner has confirmed the demand of Service Tax amounting to Rs.56,71,356/- and imposed penalty of Rs.56,71,356/- under Section 78 & Rs.10,000/- under Section 77(1)(d) of the Finance Act, 1994. 2. The brief facts of the case are that Appellant is a proprietorship firm and have been holding Service Tax Registration. It has been filing Service Tax Returns regularly. On the basis of third party information, Show Cause Notice [SCN] dated 27-04-2021 was issued proposing to demand Service Tax amounting to Rs.3,42,33,449/-, besides demand of interest and imposition of penalty under Section 77(1)(d) as well as Section 78. It also proposed to invoke extended period of limitation. The learned Commi....

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....to Governmental Authority by way of sanitation conservancy. Noida Authority having been constituted under UP Industrial Area Development Act, 1976 falls in the definition of Governmental Authority. He draws our attention to the work order issued by Project Engineer (Public health) Noida Authority wherein they were required to provide `sweepers' for `cleaning purposes'. He also claimed that they are eligible for basic exemption under Notification No.33/2012 dated 20-06-2012 on remaining amount of Rs.81,026/-. He also submitted that the entire demand is barred by limitation. 5. The learned Departmental Authorized Representative justified the impugned order and contended that Appellant were not eligible for exemption under entry 25 of Notif....

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....Set up by an Act or Parliament or a State Legislature; or (ii) Established by Government. With 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 273W of the Constitution. 11. In view of the aforesaid definition, there can be no doubt that Noida Authority falls in the definition of `Governmental Authority'. We therefore, hold that Appellant was eligible for exemption under entry 25 of Notification No.25/2012 dated 2006-2012. We also hold that on remaining amount of Rs.81,026/- Appellant was eligible for small service provider exemption under Notification No.33/2012 dated 20-06-2012. Appellant have vehemently argued that for demanding Service Tax for the peri....