Whether the activities like cutting of unwanted grass, weeds, bushes etc. would fall under the definition of 'Cleaning Activities' or not?

PJ/Case Law/2013-14/1721

Case:-NIRMAL CONSTRUCTION COMPANY VERSUS COMMISSIONER OF C. EX, SURAT

Citation:-2013 (31) S.T.R. 465 (Tri. Ahmd.)

Brief Facts:-This stay petition is filed for the waiver of pre-deposit of amount of service tax of Rs. 4,62,865/- along with interest and penalties under various sections of Finance Act, 1994.
The above said amount of service tax liability along with interest has been confirmed by both the lower authorities and penalties imposed on the appellant, on the ground that the appellant has entered into contract with ONGC for cutting and removal of all kind of unwanted grass, bushes, trees, weeds and removal/uprooting the roots of wild vegetation, removal of debris and garbage from the roads, streets and open space of ONGC township and residential areas of the ONGC. The adjudicating authority as well as the first appellate authority has held that this activity fall under the category of 'Cleaning activity services', while the appellant is claiming that it may not fall under the category of Cleaning Activities.

Appellant Contention:- The Appellant submitted that the activity undertaken by them may not fall under the category of Cleaning Activities.

Respondent Contention:-The adjudicating authority as well as the first appellate authority has held that this activity fall under the category of 'Cleaning activity services'.

Reasoning of Judgment:-We find that the issue involved in this case is regarding whether the activities hereinabove mentioned would fall under the definition of 'Cleaning Activities' or not. It is the claim of the appellant before Tribunal that cutting of unwanted grass, weeds, bushes etc. was in respect of the jungle area nearby the tanks and reservoirs where the ONGC store the crude but at the same time it was also mentioned that they are not cleaning the tanks as such. As regards the residential premises, it is his submission that the activity involved is only removing of garbage from the roads, de-silting and removing checking of sewage lines etc. and also cutting of grasses. It is his submission that the services rendered in township and residential premises and not for Commercial or Industrial Premises. We find that the activities of the appellant, prima facie, may not fall under 'Cleaning Activities'. All the legal submissions made by the learned counsel as well as by the learned departmental representative can be considered at the time of final disposal of appeal. Accordingly, we find that appellant has made out a prima faciecase for the waiver of pre-deposit of the amounts involved. Stay petitionfiled by the appellant is allowed and recovery thereof stayed till the disposal of appeal.

Decision:-Stay granted.

Comment:-The summary of this case is that the appellant has undertaken various activities like cutting of unwanted grass, weeds, bushes etc. in respect of the jungle area nearby the tanks and reservoirs where the ONGC store the crude and they are not engaged in cleaning the tanks as such. As regards the residential premises, as the activity involved is only removing of garbage from the roads, de-silting and removing checking of sewage lines etc. and also cutting of grasses, the same is not being done for commercial or industrial premises and accordingly, primarily the activities are not liable to service tax.

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PJ/Case Law/2013-14/1721

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