Services of extending corporate guarantee without any consideration is not considered as a service

Sowar Pvt Ltd Vs Commissioner of Service Tax (CESTAT Delhi) CESTAT, New Delhi in Sowar Pvt. Ltd. v. Commissioner of Service Tax [Final Order No. 50607 Of 2023 dated March 29, 2023] held that no service tax is payable as the assessee did not receive any consideration for providing a corporate guarantee. Facts: M/s. Sowar Pvt. Ltd. (“the Appellant”) is providing services of repair and maintenance, installation service, renting of immovable property etc. The Revenue Department verified the records for the period 2010-11 to 2014-15 and observed that the Appellant has given corporate guarantee ...