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2017 (2) TMI 1176 - AT - Service TaxClassification of service - Business Auxiliary Service or not? - Customer Care Services (inclusive of pantry, maintenance, security, housekeeping, hospitality, etc) to the occupants of the premises on behalf of their client, IHC - Sharing of revenue and expenses - The Gross Operating Receipt (GOR) obtained from the facilities are to be shared between the contracting parties viz. the appellant and IHC, in a fixed percentage - agreement lists out expenses to be reimbursed by IHC subject to a ceiling of 10% of GOR. Held that: - such arrangement is not liable to service tax under BAS. The overall scope of the agreement indicates that it is not for rendering of service by one to another. Rather a common pool of resources required for running and maintaining the facilities of IHC successfully was attempted in terms of the agreement and the gross revenue is also shared showing the common intent. For such situation, we do not find a service provider service recipient relationship liable to service tax. Looking at it in another angle, it can be seen that even if there is promotion of business of facilities of IHC, as already noted, the increased income is always shared by both the parties. In such situation, it will involve self service also. Admittedly, any promotion or marketing of IHC facilities will directly benefit the appellant as GOR is shared. Mandap keeper service - benefit of abatement - Held that: - the appellant is eligible for abated rate of duty as they have reversed the cenvat credit availed during the material time, fully. As such, the bar on claiming on such exemption is no more applicable. Appeal allowed - decided in favor of appellant.
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