2026-VIL-224-CESTAT-KOL-ST
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SERVICE TAX CESTAT Cases

Service Tax – Taxability of horticulture services, processing of fly ash bricks, and other management, maintenance and repair services - Appellant provided various taxable, non-taxable/exempt services to NTPC, including horticulture services, processing of fly ash bricks, and management, maintenance and repair services - Whether the horticulture services provided by the appellant are exempt from service tax – HELD – The horticulture activities undertaken by appellant are specifically excluded from the scope of 'cleaning activity' under the Finance Act. Therefore, the horticulture services provided by the appellant are not liable to service tax - The appellant have provided the services of maintenance of lawns and gardens comprised of growing of grass, plants, trees, regular mowing of lawns, pruning and trimming of shrubs and cleaning of garden, such activities would fall within the ambit of ‘Management, Maintenance or Repair service’ - The appellant has been paying Service Tax for the said service for the period after 01.07.2012, during the Negative List regime. Thus, no merit in the claim of the appellant that the said services are exempted from payment of Service Tax - The matter is remanded to the adjudicating authority to verify the correctness of the appellant's claim and quantify the service tax payable, if any – The appeal is disposed of by way of remand - Processing of Fly Ash Bricks - Appellant contended that the services of processing of fly ash bricks were exempt as per the relevant notifications – HELD - Any service provided in relation to production or processing amounting to manufacture of excisable goods is excluded from the definition of 'Business Auxiliary Service' and thus the benefit of exemption notification is available to the appellant up to 30.06.2012. For the period after 01.07.2012, such activities are covered under the Negative List and Mega Exemption Notification – The matter is remanded back to the adjudicating authority to verify the correctness of the appellant's claim and eligibility for exemption upon production of relevant documentary evidence - Other Services - Regarding the remaining demand pertaining to other services, the Tribunal held that the appellant's reconciliation between the value of services as per audited Trial Balances and the value of services declared in ST-3 Returns indicates that the value of taxable services had been correctly declared. However, the Tribunal remanded this issue back to the adjudicating authority for verification of the correctness of the appellant's claims based on the documents to be furnished - Differential Tax on Change in Rate - The Tribunal held that the demand of differential tax of 2.06% on the value of services received during 2012-13 in respect of past periods needs to be verified, as the appellant's claim in this regard appears to be in line with the judicial precedents - Opening Balance in NTPC Ledger – The appellant was following the mercantile system of accounting and was required to maintain books on accrual basis, while service tax was payable on the payment receipt basis prior to 01.04.2011. Therefore, the Tribunal remanded this issue for verification of the appellant's claim regarding the evidence of invoices issued prior to 01.04.2011 and receipt of payment thereafter - Unpaid Service Tax & Short Payment - The Tribunal remanded these issues for verification of the appellant's claims that the demand pertains to double counting and clerical error, respectively.
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