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2014 (9) TMI 344 - AT - Service TaxCommon service agreement with associate / subsidiary companies - no profit motive - Support Services of business or commerce - Section 65(104c) - Held that:- Prima facie, the arguments of the appellant that these services are not taxable, are not acceptable, mainly for two reasons. Firstly, an apparent analysis of the conditions of the Agreement and the list of services annexed thereto, vis-a-vis the definition of ‘Support Services of Business or Commerce’ as was in force during the relevant period, it would be difficult to accept that these services have been rendered by the Applicant and availed by their associate/subsidiary not in relation to their business or commerce activity but for some other purpose. Secondly, it is not in dispute that the Applicant have been continuing to render the same set of services before and after they got themselves voluntarily registered with the Department w.e.f. 10th May, 2008 under the category of “Support Services of Business or Commerce” and since then discharging their service tax liability on the said services without any protest or dispute. Hence, it sounds illogical to assume that for the period from 1-5-2006 to 9-5-2008 under similar circumstances the services would fall outside the scope of ‘Support Services of Business or Commerce’ when there has been no change in the definition prescribed at Section 65(104c) of the Finance Act, 1994. The argument of the applicant that the services rendered by them to their associate/subsidiary companies on cost sharing basis, prima facie, appears to be not convincing. The issue of revenue neutrality cannot ipso facto be considered as a ground for total waiver of pre-deposit of duty and penalty invariably in all cases without considering other attendant circumstances while disposing an application under Section 35F of the Central Excise Act, 1944. - stay granted partly.
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