The New Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the service tax demand on management service and housekeeping on the grounds of wrongful inclusion service rendered by the assessee as manpower supply service.
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 the observation of adjudicating authority is not correct and the service providing agency for providing Cleaning Services, the activity of Cleaning Services cannot be converted into the activity of providing manpower.
Also submitted that invoices of both the companies that they charged not only for service of cleaning but also for housekeeping tools, equipment, chemicals, and consumables, and none of the observed requirements of Manpower Supply Service stands fulfilled by the assessee.
Rohit Isaar, the counsel for the department relied on the decisions made by the lower authorities and contended that the demand raised by the department was as per the law and liable to be sustained.
The Bench observed that the department wrongly included the service of the assessee as manpower supply service.
The two-member bench comprising Rachana Gupta (Judicial) and Subba Rao (Technical) quashed the service tax demand imposed on the assessee while allowing the appeal filed by the assessee.
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