Service tax not payable on amount received towards mobilization advance of contract from Indian Navy

Hindustan Shipyard Ltd. Vs Commissioner of Central Excise (CESTAT Hyderabad)

As far as the amounts received by the appellant from the Indian Navy for the purpose of upgrading their facilities at the shipyard are concerned, they are not linked to the present contract and hence can only be termed mobilization advances not linked to any signed contract for rendering services. Of course, in future Indian Navy may award the appellant contracts and the amounts now paid will be adjusted against such contracts. At this stage it is n

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