The Ahmedabad bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax payable on mandap keeper services.
The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the department has sought to classify the service in the nature of Mandap Keeper Service under the category of ‘support service’. From the definition of ‘support services’, it is clear that only the services which are in the nature of outsourced services i.e. the functions that entities carry out in ordinary course of operations themselves but may obtain as service by the outsourcing from others for any reason whatsoever. The services in the instant case do not qualify as ‘support services’ and therefore, the services provided by the appellant are covered under the negative list.
The appellant/assessee Ahemedabad Municipal Corporation has challenged the demandsraised under the head of Mandap Keeper Services for the period prior to 01.07.2012 and later too.
For the period prior to 01.07.2012 the assessee pointed out that the services provided by them were not taxable as they were covered in negative list. The appellant is a government authority carrying out statutory function entrusted to it under the 12th Schedule of Article 243W of the Constitution.
The assessee argued that since the appellant is a local authority under the direct control of Government of Gujarat there cannot be a charge of deliberate suppression of information or intention to evade duty.
The tribunal held that the negative list of services excludes from the levy of service tax all the services provided by the Government except those listed in the Serial No. (i) to (iv) of Clause (a) of Section 66D. The services provided by the appellant do not fall under the clause (i) to clause (iv) of Section 66D(a).
The tribunal found that after 01.07.2012 the services provided by the appellant are covered by the negative list.
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Case Details
Case Title: Ahmedabad Municipal Corporation Versus C.S.T. Service Tax – Ahmedabad
Case No.: Service Tax Appeal No. 10989 of 2019- DB
Date: 28.11.2024
Counsel For Appellant: Tushar R Shah
Counsel For Respondent: H. P. Shrimali
