Activities of Management service and Housekeeping Falls under ‘Cleaning Service’ and Not in ‘Manpower Supply Services’: CESTAT [Read Order]

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the activities of management services and house keeping fall under cleaning service and not in the manpower supply services. 

D B Corp Limited, the appellant assessee was engaged in the publication of Daily Newspaper and also engaged two firms namely Green Steps Facility Management Services, Raipur, and Clintech Service and Workforce, Raipur for the supply of manpower for housekeeping i.e. cleaning of the assessee’s plant and office premises. 

The assessee appealed against the order passed by the Commissioner (Appeals) for confirming the recovery of service tax of Rs.2,21,951/- and the interest on the amount along with the imposition of penalty. 

Abhas Mishra, the counsel for the assessee contended that services received by the assessee were Cleaning Services and not Manpower Supply Services as alleged by the department. 

It was also submitted that as per Rule 2(1)(g) of Service Tax Rules, 1994, the service tax liability under the Reverse Charge Mechanism on Manpower Supply Service cannot be demanded where the payment had been made on a job work basis and where the laborers are under the control and supervision of the service provider. 

Rohit Issar, the counsel for the department relied on the decisions made by the lower authorities and contended that the service received by the assessee falls under the category of manpower supply service and the demand of service tax raised by the revenue was as per the law and liable to be sustained. 

The Bench observed that Section 65 (24b) of the Finance Act, 1994 defined Cleaning Services as cleaning, including specialized cleaning services such as disinfecting, exterminating, or sterilizing objects or premises. 

The two-member bench comprising Rachana Gupta (Judicial) and Subba Rao (Technical) held that it was clear from the contract and invoices that activities received by the assessee fall within the scope of cleaning activities as defined under Section 65(24b) of the Finance Act. 

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