MADHUR ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) A Service Tax demand of Rs. 39,00,446/ - along with interest thereon and penalty has been confirmed against the appellant M/s. Madhur Enterprises, Pune on the services rendered during June, 2005 to April, 2008. Appeal against the said demand before the lower appellate authority did not succeed and hence, the appellant is before us. The learned Counsel for the appellant submits that the appellant had undertaken cleaning services for various educational institutions of the D.Y. Patil Group and the said activity was excluded from the scope of cleaning service as defined under Section 65(24b) read with Section 65(105)(zzzd) of the Finance Act, 1994. Therefore, the Service Tax demand under 'Supply of Manpower Services' is not sustainable in law.

(2.) THE learned Dy. Commissioner (AR) appearing for the Revenue reiterates the findings of the lower authorities. We have heard both sides. We have also perused the bills raised by the appellant on the service recipient and these bills indicate that the charges have been made for cleaning work of the premises or the gardening works in the premises of D.Y. Patil Educational Institution. As per Section 65(24b), cleaning services undertaken in respect of non -commercial buildings and premises are not liable to Service tax. Similarly, such services rendered to agriculture, horticulture, animal husbandry or dairying is also excluded from the purview of Service Tax. Prima facie we find that the appellant has made out a case for waiver of pre -deposit. Accordingly, we grant unconditional waiver from pre -deposit of the dues adjudged against the appellant and stay recovery thereof during the pendency of the appeal.