Bindhya Bashini Traders Vs Commissioner of C.G.S.T. and Central Excise (CESTAT Kolkata)
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) heard an appeal filed by M/s. Bindhya Bashini Traders against the Order-in-Original dated 26.02.2018 confirming service tax demand of ₹3,62,49,969, along with interest and penalties, in respect of cleaning services rendered to the South Eastern Railways during the period 2012-13 to 2015-16. The appellant had undertaken services including upkeep and maintenance of railway platforms, dry sweeping of empty rakes, mechanized yard cleaning, railway platform cleaning, disposal of accumulated garbage, on-board housekeeping in reserved coaches of Poorva Express, and cleaning of Sonpur Railway Station and its surrounding areas. Initially, the appellant obtained service tax registration on the advice of the Railways but subsequently stopped paying service tax after claiming exemption under Sl. No. 25 of Notification No. 25/2012-ST dated 20.06.2012 and filed nil returns. The appellant also relied on a letter issued by the Railways on 14.07.2016 stating that such services were exempt from service tax.
The appellant contended that, prior to 01.07.2012, the services were not taxable as “cleaning service” because they were not rendered in respect of commercial or industrial buildings or premises. For the period after 01.07.2012, it argued that the services were exempt under Sl. No. 25 of Notification No. 25/2012-ST as they were provided to the Government in relation to functions ordinarily entrusted to a municipality, namely public health, sanitation conservancy and solid waste management. It also submitted that the extended period of limitation was not invocable since the demand was based on audited financial statements, Form 26AS, TDS certificates and ST-3 returns.
