Order date – 10 June 2022

Facts

• The appellant, M/s Ssb Facility Management Services Pvt Ltd., premises was searched and it was informed that value of material supplied to the service receiver was not being included and hence, VAT was not being charged to the service receivers. 
• A show cause notice was issued proposing service tax demand of Rs. 1,01,15,634/- along with interest and penalty. The appellant neither filed reply to the show cause nor attended personal hearing.
• Order was issued ex-parte and demand of Service tax was raised. Being aggrieved, the appellant filed an appeal before this tribunal.
• The contention of the Appellant is that cleaning activities in respect of non-commercial building or premises is not taxable. Further Notification No. 9/2009-ST dated 03.03.2009, exempts the taxable services which are provided in relation to the authorized operations in a Special Economic Zone. Thus, the service tax cannot be leviable on value of material supplied to the client. They made declaration under VCES after considering the exemption and deductions.

Issue:

• Whether the appellant is supposed to pay the given amount of service tax demand along with interest and penalty?

 Order:

• The Tribunal observed that the appellants have not had the opportunity to present their case before the adjudicating authority regarding final exemptions and deductions claimed to arrive at final taxable value.
• Hence, Tribunal opined that appellant should be granted one more opportunity to produce their claims before thee adjudicating authority. The original adjudicating authority is given three months to pass an order after hearing appellants. 
• The appeal is allowed by way of remand to the adjudicating authority to pass a de novo order after consideration of all claims and defenses of appellants.