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2022 (11) TMI 599 - AT - Service TaxLevy of service tax - Business Support Service which includes infrastructural support or not - permitting ISFPL to use the land and plant, machinery and equipment (“PME”) at Palghar Factory on rental basis - demand of duty alongwith penalty - HELD THAT:- From the extract of the agreement, it is clear that the appellant have not provided any regular services to the International Syntha Fabs Pvt Ltd (ISFPL) whereas they have given their plant and machinery equipment, on rental basis to International Syntha Fabs Pvt Ltd (ISFPL) for running their production activity wherein the appellant has not involved. From the said agreement, it is clear that the activity of the appellant falls under renting of immovable property in respect of land/ plant, land fixed plant. In respect of movable machinery equipment, the activity at the best can be classified as supply of tangible goods for use. It is undisputed fact that both services became taxable after the relevant period in the present case - since the very activity of the appellant have been brought under the taxable net subsequently it makes clear that the said activity was not covered under any taxable activity for the earlier period. The identical issue has been considered by this Tribunal in case of M/S BAJAJ HINDUSTAN LIMITED VERSUS CCE, LUCKNOW [2018 (5) TMI 552 - CESTAT ALLAHABAD] wherein it was held that The activity of renting of land and renting of plant and machinery cannot fall under the said explanation so as to recovered by the definition of 'support services of business or commerce. The activity of the appellant i.e. of renting of immovable property and supply of tangible goods cannot be classified under infrastructural support service. Accordingly, the impugned order is not sustainable - Appeal allowed - decided in favor of appellant.
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