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2016 (4) TMI 497 - AT - Service TaxService tax liability - “Maintenance or Repair Services” for the period prior to 01-05-2006 and subsequently under “management, maintenance or repair service” - Undertook operation of Bulk Handling Plant of ONGC and received consideration - Held that:- prior to 01-05-2006, the definition of management maintenance or repair service will not apply as the maintenance or repair service are not for management or repair service, but these are consumed by them for smooth functioning of bulk handling plant. As regards the tax liability for the subsequent period from 01-05-2006, it is found that the bulk handling plant was handed over by ONGC to respondent for operation and completing the contract to ONGC in rendering such activities, the respondent undertakes the maintenance or repair services which are for self and the services of management maintenance or repair are not attracted as the same is not provided to any client. From reading the scope of work as per agreement, principal job entrusted to respondent is in connection with smooth operation of bulk handling plant for obtaining desired results from the bulk handling plant. The agreement between ONGC and respondent does not indicate that respondent was required to provide any service relating to Management, Maintenance or Repair Services to ONGC, nor does the agreement indicate any separate fees is to be paid to respondent for Management, Maintenance or Repair Services. In order to overcome this lacuna, government has enlarged the scope of services under “Business Support Services” w.e.f. 01-05-2011 by including services in respect of “Operational or Administrative assistance in any manner” which may cover the operation of plant. Since these services were taxable w.e.f. 01-05-2011 under ”Business Support Services”, it is not taxable under Management, Maintenance or Repair Services for earlier period but the same is forfeited by one of the Tribunal's order. - Decided against the revenue
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