TMI Blog2014 (12) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... tenance and repair of the leased facility is already covered by consideration received by the Society from the cement units which is collected as service charges. This is the revenue for the society which is utilized for their activities including management, maintenance and repair of the facility - That being the position, consideration for management, maintenance and repair service can be said to have been covered by service charge received by the appellants from their customers. Since the entire service charge collected is subjected to levy under Business Auxiliary Service and such consideration includes maintenance and repair also, it cannot be said that service tax is leviable under this category separately. In any case, it cannot be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly constituted by the State Government, has installed number of power plants in the state for generation of electricity by using the coal. A large quantity of fly ash was generated from operation of such electricity generation plants and disposal of the same was a problem for the power plant as it is dangerous to the environment. The fly ash being light in weight immediately spreads in the environment. Therefore, the power plants store this fly ash in the ponds by mixing it with water to avoid spillage and pollution. The power plant authorities incurred huge expenses in relation to the disposal of such fly ash. 1.3. The present case pertains to the Raichur power plant of KPCL, which is located on the bank of river Krishna. Thus, the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. Therefore, M/s KPCL agreed to supply the fly ash which did not have any value in the market at that point of time, free of cost to the cement units. 1.6. On introduction of taxable category of Business Auxiliary Services the appellant society registered themselves under the same and were paying service tax for undertaking the process of fly ash and supplying to the cement units. 2. The view taken by the Revenue is that the appellants were providing management, maintenance and repair services of fly ash plant equipments, etc. to KPCL. In the absence of any payment from KPCL to the appellants, it was held that actual expense incurred by the appellants for management, maintenance and repair of the plant for processing fly ash h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant paragraphs of the order to submit that above submissions are not correct, yet we find that - - In this case, as submitted by learned counsel, management, maintenance and repair of leased item can be considered as a self service; - It can also be said that there is no consideration provided by KPCL for the service of maintenance and repair by the appellant; - It is admitted fact that KPCL is not receiving any consideration for fly ash supplied. Fly ash has no value and KPCL has a responsibility of disposal at cost. Therefore stand taken by the Revenue that free supply of fly ash is consideration for management, maintenance and repair, is not sustainable; - Actual expense incurred on management, maintenance and repair o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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