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2018 (12) TMI 785 - AT - Service TaxSupport Services of Business or Commerce - Non-payment of service tax - supply of crane, material handling equipment - Held that:- Supply of tangible goods as a service has been included in the taxable category with effect from 16.5.2008 by introducing necessary amendment to the Finance Act, 1994. This proves that this service was not within its ambit prior to its introduction the supply of crane and other material equipment handling equipment etc. on hire were not covered by any existing entry in the Finance act, prior to 16.5.2008, which necessitated the creation of new entry for such type of services rendered by the service provider. It was the background against which the legislature created a new category of services in the name of ‘supply of tangible goods’. The introduction of new category of service itself proves that such activity was not under service tax net before 16.5.2005 - supply of tangible goods cannot be considered as support service of business or commerce. ‘Infrastructural Support Services” primarily relates to the logistic support system, such as the office premises and other office utilities pertaining to the smooth functioning of office and hence supply of cranes and material handling equipment can by no stretch of imagination can be brought within the scope of ‘Support of Service of Business or Commerce’. The services provided by the appellant is not covered under the support service of business or commerce - The service provided by the appellant will fall under the category of ‘support of tangible goods’ with effect from 16.5.2008. In the case demand pertains to the period from 1.4.2006 to 10.3.2008 and hence non-taxable under the Finance Act. Appeal allowed - decided in favor of appellant.
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