Case Law Details
Hazira Lng Pvt. Ltd. Vs C.S.T. Service Tax (CESTAT Ahmedabad)
CESTAT Ahmedabad held that arrangement of the appellant with it is associate companies is in the nature of cost sharing and it would not be correct to say that the appellants are providing any services to their associate companies and hence demand of service tax unsustainable.
Facts-
The Appellants have another group company associated enterprise namely M/s. Hazira Port Pvt. Ltd. (HPPL). The Appellants shared certain expenditure like common office building, security services, insurance services, manpower costs etc. with HPPL. The Appellants used to raise cost sharing invoices on HPPL. The Appellants also charged applicable service tax under the taxable category of Business Support Services from the invoices raised on or after 01.04.2006 for the cost sharing invoices. Thus, during the period 01.04.2005 to 31.03.2008, the Appellants charged the cost sharing expenses of Rs.29,20,64,558/- along with service tax of Rs.2,64,57,777/-.
Due to poor financial conditions of HPPL, the Appellants waived off the sum of Rs.29,20,64,558/- along with service tax of Rs.2,64,57,777/- on 31.03.2008.
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