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TMI Blog2025 (5) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the said agreement. The other conditions of the agreement are as under: - "1.4 SCOPE OF WORK The lessee shall operate and maintain the station and carry out works including but not limited to the following: 1.4.1 Operation of the power plant at its maximum rated capacity and guaranteed plant load factor with minimum interruptions so that all loads connected to station get uninterrupted power supply. 1.4.2 Maintenance of the plant & equipment of various systems and buildings within plant boundary, raw water pumping and piping system, ash pond and ash disposal system, effluent neutralization and disposal system, transmission lines for power evacuation system and lessor's residential buildings used by lessee outside the plant boundary. 1.4.3 Carrying out all repair works including capital repairs and statutory inspection/overhauling/repair of boilers. 1.4.4 ........ 1.4.8 Transportation of fuel (washery reject) from washery/reject dump to power plant site. 1.4.9 Disposal of ash from ash pod to other land filling sites offered by CCL. from time to time when the existing ash pond gets filled up 4.0 LEASE RENT 4.1 The lessee to pay the rent of Rs.32 Lakhs p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement for loading/ unloading/transportation/storage of rejects from source at nearby washery head/stockyard to power plant at its own cost. 8.2 Tariff variation on account of variation of cost of washery rejects, transportation cost and statutory taxes and levies on fuel. The following formula shall be used for revising the fuel cost element of tariff for escalation in fuel cost element: Tfen = Tfco (C1/C0) Where, Tfen = New tariff for fuel cost element Tfco = Original tariff for fuel cost element quoted by the bidder C1 = New cost of fuel per tonne on account of revision of prices by CIL/CCL and/or payment of any statutory taxes and levies by bidder on purchase of rejects and escalated cost of transportation of washery rejects. C0 = Original base cost of rejects @Rs.389 per tonne (excluding statutory taxes and levies) for range of GVC specified and transportation cost of reject quoted by bidder. 14.0 OPERATION AND MAINTENANCE 14.1 The lessee shall maintain in proper manner the scheduled building in wind and water tight condition and lessor shall not be liable to pay any amount for the maintenance of the building or any account whatsoever. 14.2 The lessee shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h default to be remedied then lessor shall be entitled to terminate the agreement and the investor shall be bound to deliver vacant possession of station to lessor without any hindrance and if the lessee fails to handover the vacant possession of the land and station thereon, the subject matter of this agreement, within the stipulated period, the lessor shall take possession of the land and Station thereon and in that case, the lessee shall not be entitled to any claim or objection to such taking over of the possession of the land and Station and further on that event al the losses and damages caused to the lessor in taking possession of the land and station thereon shall be compensated by the lessee in accordance with law. It is further clarified that the lessor shall always be entitled for all the benefits to impose its rights conferred in it out of their clauses of this agreement. 17.2.2 The agreement will also come to an end on the happening of the following events:- a) If lessee goes into liquidation b) If the license of the lessee under Indian Electricity Act, 1910 is determined or not renewed on expiry of the term." 3. The appellant paid Service Tax amounting to Rs.2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of these submissions, the Ld. Counsel for the appellant contends that the appellant is not liable to pay Service Tax under the category of 'renting of immovable property' service. 8.1. To support this contention, the appellant has relied on the decision of the Hon'ble Supreme Court in the case of C. Cheriathan v. P. Narayanan [AIR 2009 SC 1502]. The appellant has also relied on the decision of the Hon'ble Supreme Court in the case of Ishikawajima-Harima Heavy Industries Ltd. v. Dir. of Income Tax, Mumbai [2007 (6) S.T.R. 3 (S.C.)], to say that a contract is to be seen as a whole, to demand Service tax and thus, the appellant is not liable to pay Service Tax in this case. 8.2. Accordingly, it is contended by the appellant that the impugned order is to be set aside and their refund claim is to be sanctioned. 9. On the other hand, the Ld. Authorized Representative appearing on behalf of the Revenue submits that in this case, as per the agreement entered into, the lessee is required to pay an amount of Rs.32,00,000/- as lease rent to the appellant and for such lease rent received by the appellant, the appellant are liable to pay Service Tax under the category of 'renting of immov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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