Case Law Details
Commissioner of Central Excise & ST Vs M J Solanki (CESTAT Ahmedabad)
CESTAT Ahmedabad held that service of supply the manpower services provided to educational institutions is exempt from payment of service tax vide Sr. No. 9 of Notification No. 25/2012-ST dated 20.06.2012.
Facts- M/s M.J. Solanki (Partnership Firm) is engaged in providing taxable services such as Cleaning Services and Manpower Recruitment or Supply Agency Services etc. Information received by the DGGI indicated that respondents have provided the taxable services but had not paid the appropriate amount of Service tax on taxable services provided by them. Acting on the intelligence, an inquiry was initiated against the respondent. Accordingly, a search was carried out at their registered office and documents/ records relevant to the inquiry available at the said premises were withdrawn under Panchnama.
Investigation of such documents withdrawn and subsequently details provided by the assessee viz, agreement/contracts/works orders/ invoices/ ledger and statement of Shri Anil Solanki, partner revealed that the Respondent is engaged in providing the services of Manpower Supply, cleaning and House-keeping, Security, Rent-a-cab etc, to their various clients which includes hospitals, medical colleges, educational institutes, local authorities viz. Collector offices, municipal corporations, public health centres, block health centres etc; banks, public sector undertakings, educational institutions, re-search institutions, western railways, districts courts; etc.
Assessee has claimed exemption against major chunk of services them. However, department is of the view that services provided by the respondent are taxable and they are liable to pay Service tax on the income earned from providing said services.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
