Service Tax
TRT-2025-
Cestat Chennai
Date:-03-03-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 03 March 2023
Parties: M/s. Perundurai Common Effluent Treatment Plant Vs The Commissioner of Central Excise and Service Tax
Facts –
- The Appellant, M/s. Perundurai Common Effluent Treatment Plant, being an association with 14 member units, engaged in the activity of treating effluents discharged from the member units.
- They collected fixed cost and variable cost from each member unit and also collected 10% amount on the fixed cost towards emergency / capital expenditure account, which would be utilized for meeting the emergency expenditure for treating the effluents.
- A show cause notice dated 22.04.2014 was issued for the period from July 2012 to March 2014alleging that the above activity falls under the definition of “service”. The appellant did not register themselves with the Department and did not discharge their Service Tax liability.
Issue –
- Whether the appellant required to pay service tax on the remuneration collected from the member units for the activity of treatment of effluent water?
Order –
- The Tribunal held that the said activity has been exempted from the levy of Service Tax vide Notification No. 08/2017-S.T. dated 20.02.2017, that the Service tax payable on the said services by the operators of Common Effluent Treatment Plant, under Section 66B of the Finance Act, 1994 but for the said practice, during the said period (commencing on and from the 1st of July 2012 and ending with the 31st of March, 2015), shall not be required to be paid.
- Since the activity is exempt from the levy of Service Tax as per the above Notification, hence the demand cannot sustain and requires to be set aside
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