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2017 (6) TMI 476 - AT - Service TaxBusiness support service - providing of storage tanks and other accessories - receipt of ‘facilities service charges’/ ‘rental charges’/ ‘facility fees’ as consideration - Revenue entertained a view that such charges collected by the appellant shall be liable to service tax, considering the said activity as providing infrastructural support covered under tax entry ‘business support service’ w.e.f. 01.05.2006 - whether or not the appellants are liable to service tax in respect of the consideration received from the clients for putting up machinery/ storage facilities for gas and connected accessory in their premises? Held that: - the storage facility are closely linked with sale of gas by the appellant. In other words, the creation and maintenance of such facility in the client’s premises is in furtherance of facilitating such sale of gas, by the appellant and purchase of same for industrial use by the client. It is a beneficial arrangement for both. In such situation it will not be correct to consider the amount received towards lease rent/ facility fee etc. as consideration for providing business support to the client. Though the activities of the appellant, can be brought under very generic understanding of infrastructure support, when examined with statutory scope as per explanation indicating nature of services which are to be brought under tax net than it would appear that the present activity will not get covered under the said tax entry. The renting of immovable property or the supply of tangible goods as services liable to tax, appear to have direct relevance to the transactions now under examination - the present transactions which are sought to be taxed by the Revenue cannot be considered as covered by the scope of business support service during the material time. Appeal allowed - decided in favor of appellant.
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