Corporate Housekeeping Services (India) Private Limited Vs Commissioner of Service Tax (CESTAT Delhi)
In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi set aside a significant service tax demand imposed on M/s Corporate Housekeeping Services Private Limited (CHSPL). The case, involving Service Tax Appeal No. 50011 of 2017 and Service Tax Appeal No. 50274 of 2017, centered on the taxability of housekeeping services provided to international organizations, including United Nations (UN) agencies and educational institutions. The tribunal’s ruling highlights crucial aspects of service tax exemptions under Indian law, particularly concerning services rendered to international bodies.
Detailed Analysis
Case Background
M/s Corporate Housekeeping Services Private Limited, engaged in providing manpower and housekeeping services, faced a service tax demand of ₹1,30,26,548, along with interest and penalties, for the period from April 1, 2011, to March 31, 2015. This demand arose from services provided to various UN agencies such as WHO, ILO, UNESCO, FAO, and SEZ units, as well as educational institutions.
The service tax department issued multiple show cause notices over the years, questioning the non-payment of service tax on these transactions. The appellant contended that these services were exempt under Notification No. 16/2002-ST and Notification No. 25/2012-ST.
Key Arguments
1. Exemption for Services Provided to UN Agencies
