SULABH INTERNATIONAL SOCIAL SERVICE ORGANISATION Vs. STC

JUDGEMENT

(1.) REVISING an order of original authority dropping proposal to demand Service Tax from the appellant on cleaning activity undertaken by it in various buildings set up and maintained at Tirupathi by the Tirumala Tirupathi Devasthanam during the period from 16/6/2005 to 31/3/2006, the Commissioner confirmed a demand of Rs. 28,54,217/ - and imposed penalties Under Section 76, 77 & 78 of the Finance Act, 1994 (the Act) on the appellants. The impugned order also demands applicable interest on the Service Tax demanded. Moving an application for staying the recovery of adjudged dues, ld. Counsel for appellants submits that the activity undertaken by the appellants viz. cleaning activity of Section 65(24b) of the Act is taxable only if such activity is undertaken in commercial or industrial buildings and premises thereof, or, factory, plants, or machinery, tank or reservoir of such commercial or industrial premises thereof. In the instant case, the premises in which the impugned activity was undertaken by the appellants are buildings maintained by the Tirumala Tirupathi Devasthanam for providing accommodation to pilgrims visiting the temples at Tirupathi. Therefore, the impugned activity cannot be legally classified as taxable service specified under Section 65(24b) of the Act. He also submits that the Commissioner has erroneously confirmed demand of Rs. 27,98,252/ - whereas the tax due as per the revision order is actually Rs. 16,02,895/ -. We also heard ld. SDR.

(2.) AFTER carefully perusing the records of the case and submissions by both sides, we find that, prima -facie, the impugned activity is not taxable service specified Under Section 65(24b) of the Act and the appellants have made out a prima -facie case against the impugned demand and penalties. In the circumstances, we order complete waiver of the adjudged dues and stay recovery thereof pending decision of the appeal.