Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Central Excise, Nashik Versus Sahastronics Controls Pvt. Ltd.

2015 (12) TMI 1496 - CESTAT MUMBAI

Demand of service tax - services provided to self - Management, Maintenance or Repair services - Held that:- To maintain ones own equipment, to optimize the usefulness, by maintenance and repair, in the BOOT period, is certainly not liable to Service tax as services rendered to self cannot be taxed. - There is nothing on record to indicate contrary in the appeal filed by the Revenue - In our view the impugned order as well as the order of the adjudicating authority are correct, legal and does no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in this case is regarding the service tax liability under the category of "Management, Maintenance or Repair services." The respondent herein entered into a contract with Nashik Municipal Corporation (NMC) for the activity of design & drawing, manufacture, supply and installation, testing and successful commissioning of micro processor based energy saving devices and the maintenance thereof. This contract is for five years. It is the case of the Revenue that the amount which has be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ellant's argument is that agreement on BOOT basis was not solely for Built own operate & transfer but also for periodical and systematic plan for -recovery of cost of the project as well as services rendered and to be rendered by respondent. The respondent is a commercial concern and obviously any activity undertaken by them is for earning profit. The earnings can be categorized as cost of the equipment manufactured and the earnings from the functioning of the equipment i.e. in the form .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nergy saving. Para 9 B of the contract indicates that respondent would be paid through energy cost saved in percentage basis for- a period of five years. Para 10 of equipments are not functioning optimally, they are bound to lose the remuneration/earnings. It is the responsibility of the respondent and in his interest to maintain and ensure proper functioning of the equipment installed, which are their property. To brand the maintenance and upkeep of the equipment of self, which is done to ensur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion received therefor, solely on account of maintenance and repair services rendered to NMC, is without any basis, grounds or evidence. Moreover, the SCN itself mentions that Service tax is calculated on set- vice part of remuneration/energy saving charges. 7.2 The appellant in the appeal has mentioned that the fiction that goods are sold for consideration for ₹ 1/- is only a legal fiction and the whole process was very much controlled by NMC in as much as the respondent was not having an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version