Case Law Details
Welspun Syntex Ltd Vs C.C.E. & S.T.-Vapi (CESTAT Ahmedabad)
CESTAT Ahmedabad held that the activities of renting of immovable property and supply of tangible goods cannot be classified under infrastructural support service and since the said services were taxable after the relevant period. Demand of service tax not sustainable for earlier period.
Facts-
The appellant entered into a conducting agreement with International Syntha Fabs Pvt Ltd (ISFPL) permitting ISFPL to use the land and plant, machinery and equipment (PME) at Palghar Factory on rental basis. The consideration received towards renting of land and PME by the appellant from ISFPL, during the period under dispute. The case of the department is that such consideration is liable to Service Tax under the head of Business Support Service provided by the appellant to ISFPL, accordingly, a show cause notice was issued which was adjudicated by the Commissioner, wherein, it was held that activity of renting PME is classifiable under taxable Business Support Service and confirmed the demand of service tax with effect and imposed equal penalty u/s. 76 and penalty u/s. 77 and 78 was also imposed. Being aggrieved by the said Order-In-Original. Appellant filed the present appeal.
Conclusion-
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