P.K. Das, Judicial Member - Revenue filed this appeal against Order of the Commissioner (Appeals) whereby adjudication order was set aside and it has been held that the activities pertaining to maintenance of green belt and maintenance of grass, plants, fruits, trees and shrubs, etc. are not subject to service tax under Finance Act, 1994. According to Revenue, the activities of maintenance of garden carried out by the Respondents would fall within the scope of "maintenance of immovable property" such as the "parks and the like" and service tax would be levied with effect from 16-6-2005 under section 65(64) of Finance Act, 1994.

2. The relevant facts of the case as per records, in brief, are that the respondents entered into a contract with M/s. Chambal Fertilizers & Chemicals Ltd. (in short "CFCL") for annual maintenance contract of green belt maintenance in CFCL garden. The scope of contract is "Horticulture and Landscaping". A show-cause notice dated 8-5-2006 was issued proposing demand of tax of Rs. 21,72,670 for the period 16-6-2005 to 28-2-2006 under the category of "Maintenance or Repair service". It was also proposed to impose penalty along with interest.

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