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2019 (6) TMI 862 - AT - Service TaxClassification of services - management, maintenance and repair service or not? - appellants are engaged in the operations of power plants of others for generation of electricity - time limitation - HELD THAT:- The appellants are engaged in the operations of power plants of others for generation of electricity; most of their clients belong to Steel/Automobile industry; by virtue of contracts entered there-into - The appellants charged “operation fee” and “maintenance fee” separately from the customers. They have been discharging Service Tax on “maintenance fee” collected by them from 01.07.2003. Tribunal in the case of Operational Energy Group of India Pvt. Ltd. v. CST, Chennai [2017 (6) TMI 225 - CESTAT CHENNAI] has held that “the activity would not fall under ‘management of immovable property’. That it will get covered under the definition of Business Auxiliary Service; the dominant activity carried out in the power plant being generation of electricity and maintenance of the power plant being only an incidental one. That generation of electricity amounts to ‘manufacture’ of goods within the meaning of section 2(f) of the Central Excise Act, 1944. That electricity is mentioned under Chapter Heading 27.16 of the First Schedule to the Central Excise Tariff Act, 1985, with effect from 01.03.2005 and electricity being an excisable product, though with nil rate of duty. In the present case, the sole purpose of management of the immovable property. In the present case, the sole purpose is not management of immovable property. Further, the management, if any, of the power plant is done by the appellants and is only incidental to the activity of generation of electricity. The activity carried out in the power plant is not solely management of power plant, but operation of the same. The word ‘operation’ is not used in the definition of ‘Maintenance and Repair’ services which is relied by department as amended with effect from 16.06.2005. The said word in seen used in the definition of Business Support Services (‘Operational assistance’). Thus, it is very much clear that management of immovable property does not include operation activities. In addition, it cannot be said that the appellants are doing management service for the reason that the management service is done by appellants to themselves and not to any other person. The appellants are operating the power plant to generate electricity on behalf of the owner for supplying the same to TNEB. Appeal allowed - decided in favor of appellant.
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