SSB Facility Management Service Pvt Ltd Vs C.C.E (CESTAT Ahmedabad)
The CESTAT, Ahmedabad in the matter of M/s. SSB Facility Management Service Pvt Ltd. v. C.C.E. & S.T. -SURAT-I, [Service Tax Appeal No.12044 of 2015 dated June 10, 2022] set aside the Ex-parte order passed by the Revenue Department confirming the demand of Service tax along with interest and penalty on the cleaning services in respect of non-commercial building or premises. Held that, the demand of Service tax on such supply is not leviable as it is exempted from the levy of Service tax. Further, remanded back the matter to the Revenue Department for passing a fresh order.
Facts:
A search was carried out by the officers of Central Excise & Service tax (“the Respondent”) at the premises of M/s SSB Facility Management Services Pvt. Ltd. (“the Appellant”). During the search it was found that, The Appellant had not been paying any Service tax on the supply of cleaning services and on cost of the materials supplied to the service receivers. Moreover, no VAT was being charged in the bills raised to the Service receivers.
Accordingly, summons was issued to the Appellants to produce the documents and to give statement against the allegations and findings of the Respondent. However, the Appellant failed to respond to the summons. Thus, on the basis of available seized records and details available, Service tax liability was calculated and a Show Cause Notice (“SCN”) was issued to the Appellant proposing service tax demand of INR 1,01,15,634/- along with interest and penalty. Consequently, an Ex-parte order (“the Impugned Order”) was passed confirming the Service tax on account of non-furnishing of defence reply by the Appellant.
Being aggrieved by the Impugned Order, the Appellant had filed this appeal.
Issue:
Whether Service tax is leviable on supply of cleaning services?
Held:
The CESTAT, Ahmedabad in Service Tax Appeal No.12044 of 2015 dated June 10, 2022 held as under:
