CESTAT Allows Service Tax Exemption on One-Time Water Infrastructure Charges

State Industries Promotion Corporation of Tamil Nadu Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) The appeal before CESTAT Chennai concerned whether the appellant, a State industrial development corporation, was liable to pay service tax on the 50% capital cost collected upfront from industrial allottees for establishing water supply infrastructure in industrial estates. The appellant grants industrial plots on 99-year leases and requires each allottee to enter into a separate water supply agreement. Under this arrangement, allottees pay a one-time upfront amount equal to ...