Rohan And Rajdeep Infrastructure Pvt Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Chandigarh)
CESTAT Chandigarh held that the demand of service tax on adda-fees under the category of ‘business support services’ is not sustainable in law and is liable to be set aside. Accordingly, order is liable to be set aside and appeals are allowed.
Facts- The Appellant is engaged in provided the services under ‘Business Support Service’. It was gathered that the Appellant was engaged in collecting adda-fees from the users of bus-terminal at Amritsar from transporters for using various facilities at the bus-terminal. Further, during the investigation, it was found that the Appellant was registered with the department for providing services under the category of ‘Commercial & Industrial Constructions’ as well as ‘Advertising Service’; however, the Appellant provided ‘Business Support Service’ and collected consideration in the name of adda-fees from various transporters.
Accordingly, the SCN dated 11.04.2012 was issued for the period October 2006 to September 2011 inter alia alleging that the adda-fees collected by the Appellant are for support services/facilities and are in the nature of ‘Business Support Services’ on which service is leviable with effect from 01.05.2006. The said demand was confirmed vide order dated 19.10.2012. Commissioner (A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
