Cost-sharing arrangement not amount to provision of BSS or other taxable service

Madhya Gujarat Vij Company Limited Vs Commissioner of C.E. & S.T.-Vadodara (CESTAT Ahmedabad) The CESTAT Ahmedabad ruled that cost-sharing arrangements among group companies of Madhya Gujarat Vij Company Limited (MGVCL) are not subject to service tax under Business Support Services (BSS) as defined in Section 65(104c) of the Finance Act, 1994. The case stemmed from reimbursements made by group companies for shared expenses like maintenance and administrative costs, which were borne by MGVCL for assets it owned. These reimbursements were on an actual basis without any profit margin. The tax...