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2017 (3) TMI 728 - AT - Service TaxHiring of equipment and facilities - leasing of high quality fire equipments, electrical systems, Air Conditioning plants, DG sets, elavators, fixtures and fittings, chairs, carpeting, pantry and kitchen equipments, music and PA system, access control and security system, etc - Revenue's stand is that providing of office utilities, equipment and facilities by the appellant to the recipient is covered under Business Support Services(BSS), which has been defined u/s 65(104c) of the FA 1994 - Held that: - From the prudent person's point of view, the said equipment and facilities are certainly in the nature of infrastructure. The appellant has provided them not on sale basis but on hiring basis. It means that there is continuous link of the appellant with these equipment. When there is a continuing link and nexus of the appellant with the said equipment and facilities it cannot be called that this is not an “infrastructural support”. And once it is an infrastructural support, the fact of providing the said equipment and facilities would be covered by the definition of “Support Services of Business or Commerce” as defined in section 65(104c) of FA, 1994 and, therefore, the collections made on account of providing these equipment and facilities to M/s Alcatel would be chargeable to service tax under section 65(105zzzq) as the “Business Support Service” provided by the appellant to M/s Alcatel. As the appellant clams that they have discharged their service tax liability on hiring charges also for the period of 01.06.2007 to 31.03.2010, the tax paid by the appellant can be appropriated by the department under the service head of “Business Support Services” - the matter needs re-examination. Penalty - Held that: - the appellants have voluntarily made payment of service tax along with interest prior to issue of SCN - provisions of section 80 of the Finance Act, 1994 would be applicable in case of appellant assessee. Therefore, the penalties imposed on the appellant assessee under sections 77 and 78 are hereby dropped. Appeal allowed by way of remand.
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