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2013 (10) TMI 436 - AT - Service TaxBusiness Support Servcie - Infrastructural support service - Removal of fly ash - Whether removal of Fly ash as per rate of the order of Government of Tamil Nadu would constitute ‘infrastructural support service’ under the definition of ‘Support Service of Business or Commerce’ - Held that:- Services rendered by a person must have a direct or a proximate relation to the subject matter of the taxing entry and the context in which the words ‘in relation to’ are used has to be borne in mind to judge the extent of the scope of an entry which may be of wide amplitude - orders issued by the appellant to the cement and asbestos sheet companies do not disclose that the appellant provided any service to the companies. The appellants as per order of Government of Tamil Nadu removed the Fly ash from the site and collected rate as prescribed therein from the said companies. At the best, the amount collected by supply Fly ash utilized for water, lighting, road maintenance etc. in their site as referred in letter dated 10.5.2007 appears to be in conformity with the utilization of Fly ash as mentioned in Draft Notification dated 6.11.2008 issued by the Central Government, wherein the Thermal Power Stations are permitted to sell Fly ash. There is no mention in the contract between the appellant and cement and asbestos sheet companies that the appellant is providing any service to them. Activity of collection and removal of Fly ash as per rate of the order of Government of Tamil Nadu would not constitute ‘infrastructural support service’ under the definition of ‘Support Service of Business or Commerce’. We have noticed that Government of India, Ministry of Environment and Forests issued Notification dated 14.9.1999 to the effect that Fly ash should be supplied free of cost. Subsequently, by notification dated 6.11.2008, issued by Ministry of Environment and Forest, Thermal Power Stations are permitted to sell Fly ash to the user agencies. It makes it clear that the consideration received by the appellant from the cement and asbestos sheet companies for supply of Fly ash seems to be for sale of fly ash. In our opinion, it is not for any service provided to the persons taking delivery of Fly ash, notwithstanding the name under which, it is collected. Hence, the demand of service tax along with interest is not sustainable - Following decision of Indian National Shipowners Association Vs. Union of India & Others [2009 (3) TMI 29 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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