TMI Blog2022 (11) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... been shared proportionately by the appellant and its sister concerns. Taxability of the service charges under the head Business Support Service received from Webdunia - HELD THAT:- Both Webdunia, PPPL and Naidunia (appellant) are under the same management. Thus, there is element of mutuality in sharing of facility and the available news library. Accordingly, the said receipt is not chargeable to tax (of Rs.30,000/- p.m.) under the head Business Support Service . Extended period of limitation - penalties - HELD THAT:- The appellant have maintained proper records of their transactions and receipts. Thus, the issue and demand in dispute is wholly interpretational in nature or by way of change of opinion. Admittedly, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall also provide editorial facilities/services by offering one of their Editorial Staff, on free of cost basis, provide support of its network including undertaking of specific assignment to Webdunia and shall also provide space in its premises for 6 to 8 persons, subject to maximum of 800 sq. ft., without any charge. Further, Webdunia shall have exclusive right to use the contents and materials provided by Naidunia for development and deployment on its web portal. However, without prior written permission of Naidunia, they shall not provide the same to any other person. For the above mentioned services, M/s. Webdunia is paying service charges of Rs.30,000/- per month to Naidunia, which has been reflected in the Profit Loss Account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head Business Support Service . Thus, it appeared that the appellant have short paid tax for the period 2007-2008 to 2011-2012. It further appeared that threshold exemption claimed by the appellant under notification no.6/2005-ST is not available to them, as the total aggregate value of all taxable services provided by them during the year 2006-2007 comes to Rs.12.77 lakhs, which is beyond the exemption limit. Thus, invoking the extended period of limitation, show cause notice dated 18.04.2013 was issued demanding service tax of Rs.25,23,887/- along with interest and further, penalties were proposed. The show cause notice was adjudicated on contest and an amount of Rs.24,27,798/- was confirmed, dropping the demand of Rs.96,089/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses and not includible in the taxable value. (ii) Whether the appellant is correct in submitting that suppression would not be there if the demand is raised on the basis of the balance sheet and penalty under Section 77 and 78 is not imposable. 6. Ld. Commissioner (Appeals) found that electricity charges are part of facility sharing charges as per the agreement. Further observed that there was fixed charge per month for sharing all the facilities except electricity charges, which being variable as per usage were charged separately. But still it remained part of facility sharing agreement. Accordingly, held that the recovery /reimbursement of electricity charges would be part of provision of service. He also rejected the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 9. Having considered the rival contentions, I hold that the appellant is not liable to service tax on the amount received as facility charges amounting to Rs.1,73,50,000/- as the same is wholly attributable to electricity expenses, which has been shared proportionately by the appellant and its sister concerns. 10. The next issue in this appeal is regarding taxability of the service charges under the head Business Support Service received from Webdunia. 11. Ld. Counsel for the appellant urges that the appellant have only provided a cess and use or all the news materials already available with them and have not provided any service in the nature of Business support Service . Admittedly, editorial facilities have been provided fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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