Sapthagiri Cleaning Services Vs Joint Commissioner of Central Tax (Karnataka High Court)
Karnataka High Court remanded the matter involving applicability of service tax on supply of manpower involved in garbage collection as well as auto tipper vis-à-vis its coverage in mega exemption notification 12/2012 as amended by 25/2012.
Facts- The petitioner is stated to be the contractor engaged in Municipal Solid Waste Management in parts of Bangalore in terms of the work orders issued by the Bruhat Bengaluru Mahanagara Palike (BBMP). It is stated that on the basis of the data received from the Central Board of Indirect Taxes and taking note of the declaration of value of services declared by the assessee in the Income Tax Returns in Form – 26AS and noticing that the assessee had not filed ST – 3 returns, the matter was taken up and the assessee was called upon to state reasons for non-payment of service tax and to furnish relevant documents.
The show cause notice has been issued and the premise on which the show cause notice has been issued is that the assessee which is carrying on cleaning services is to be construed as providing services which fall within the service tax net.
