M/s. Jaipur Ex-Servicemen Welfare Cooperative Society Ltd. Versus Commissioner of Central Excise, Jaipur-I
Security Agency Services – Manpower Recruitment or Supply Agency – Interest u/s 75 – Penalty u/s 76, 77 & 78 – Appellant are Cooperative Society registered under Rajasthan Societies Act for welfare of ex-servicemen by providing employment to them – during the period of dispute they were providing the services of security agency taxable under Section 65 (105) (w) readwith Section 65 (94) of the Finance Act, 1994 and the service of manpower or recruitment of supply service under Section 65 (105) (k) readwith Section 65 (68) of the Finance Act, 1994 – appellant’s contention is that various Cooperative Societies registered under the Cooperative Societies Act of the respective States for welfare of ex-servicemen by providing employment to them are not commercial concern and hence during period prior to 01/05/06 their activity would not attract service tax – Held that:- During the entire period of dispute including the period prior to 01/05/06, the activity of the appellant was taxable under Section 65 (105) (k) readwith Section 65 (68) and Section 65 (105) (w) readwith Section 65 (94) of the Finance Act, 1994. – Following decision of Punjab Ex-Service Corporation vs. Union of India [2010 (9) TMI 871 – PUNJAB & HARYANA HIGH COURT]
Since there was no malafide or intention to evade on the part of the appellant, it has to be held that non-payment of service tax was due to bonafide reason and, hence, invoking Section 80 of the Finance Act, 1994 penalty under Section 76, 77 and 78 have to be waived. – Decided partly in favour of assesse.
Source – TMI