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TMI Blog2024 (3) TMI 1231X X X X Extracts X X X X X X X X Extracts X X X X ..... 2z Infrastructure Pvt. Ltd. for setting up clean development mechanism electricity (CDM) Co-generation plant of 20 MW on Build, Own, Operate and Transfer (BOOT) basis to improve energy efficiency and to reduce steam consumption. In terms of the MOU M/s a2z were to supply free power and steam to the appellants and the appellants were required to provide 5 acres of vacant land, water and bagasse free of cost; M/s a2z were free to sell balance electricity, after supplying to the appellant, to other third parties. In terms of the MOU M/s a2z deposited 50,00,000/- (in place of Rs. 2,00,00,000/- deposit as per MOU). Thereafter M/s a2z backed out and no activity was done and the appellants-initiated arbitration proceedings on 28/11/2011. Revenue w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 171(Tri. Ahmd.) * M/s Goodyear South Asia Tyres Pvt Ltd, Vs CCE 2020- TIOL-597-CESTAT- Mum. * Air Liquide North India Pvt Ltd Vs CCE 2017(4) GSTL 230. 4. Ld. Advocate also submits that Rs. 50,00,000/-, paid by M/s a2z Ltd, was as per Clause 2.3 of the agreement which was to be paid within 4 months of signing of MOU; this deposit cannot be seen as a consideration for the service provided and was meant for modernisation of the mill; Ld. Commissioner did not appreciate the board circular dt.27/07/2005; The amount was refundable; if refunded no service tax would have been payable even if it was a service; be rendered and even then no service tax is payable; moreover, it was a mere deposit, as per MOU, for modernization of the mill and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts-initiated arbitration proceedings against M/s a2z. This sum of Rs.50,00,000/- deposited with the appellants is being viewed, by the Revenue, as the advance for consideration of infrastructure service to be provided by the appellant. 7. We find that it would be beneficial to have a look at the definition of "Business Support Service". Section 65(104c) defines and explains the scope of service is as follows. "Support Services of Business or Commerce" means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the taxable service it appears that the term "Infrastructure Support Service" includes providing of office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services etc. A clear takeaway from the definition of "Business Support Service" is that it is in the nature of outsourced work which necessarily presupposes deployment of services as well as personnel to help the business of the other person. In the instant case, no such outsourcing of work by M/s a2z Ltd to the appellant is visible. It is clear from the wordings of the definition that one party, the provider of the service should render service to support the business of the other party, that is the recipient of the service. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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