COMMISSIONER OF CENTRAL EXCISE Vs. ANS CONSTRUCTIONS LTD

JUDGEMENT

(1.) REVENUE filed this appeal against Order of the Commissioner (Appeals) whereby adjudication order was set aside and it has been held that the activities pertaining to maintenance of green belt and maintenance of grass, plants, fruits, trees & shrubs, etc. are not subject to service tax under Finance Act, 1994. According to Revenue, the activities of maintenance of garden carried out by the Respondents would fall within the scope of "maintenance of immovable property" such as the "parks and the like" and service tax would be levied w.e.f. 16.6.2005 under Section 65(64) of Finance Act, 1994.

(2.) THE relevant facts of the case as per records, in brief, are that the respondents entered into a contract with M/s. Chambal Fertilizers & Chemicals Ltd. (in short "CFCL") for annual maintenance contract of green belt maintenance in CFCL garden. The scope of contract is "Horticulture and Landscaping". A show cause dated 8.5.2006 was issued proposing demand of tax of Rs. 21,72,670/ - for the period 16.6.2005 to 28.2.2006 under the category of "Maintenance or Repair service". It was also proposed to impose penalty along with interest. Original authority confirmed the demand of tax and imposed penalties alongwith interest. The Commissioner (Appeals) set aside the adjudication order. Hence, Revenue filed this appeal.

(3.) LEARNED Advocate on behalf of the respondents reiterates the findings of the Commissioner (Appeals). He submits that it is revealed from the contract that the appellants merely undertook horticulture and landscaping activity, which is not maintenance of immovable property. He also submits that the respondents paid the tax for the construction and cleaning of underground/above ground water channels and repair and maintenance of civil, mechanical and electrical fittings/fixtures in the green belt. He also submits that the definition of "cleaning activity" under Section 65(24b) of the Act excluded service in relation to agriculture, horticulture. It is contented that the definition of "immovable property" under Section 3 of the Transfer of Property Act excluded standing timber, growing crops or grass.