2014 (11) TMI 39 - AT - Service Tax

Classification - assessee leased out their sugar factory - Business Support Service or renting of immovable property - Held that - Respondent leased out their sugar factory to M/s Purna SSK Ltd. The case of the Revenue is that as the factory is leased out alongwith machine and machinery therefore the respondents are providing Business Support Service (Providing Infrastructure). It is not the case of the Revenue that only machinery with infrastructure has been used by M/s Purna SSK Ltd. As the whole factory has been leased out therefore we find that this will more appropriately covered under Renting of Immovable Property service - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT MUMBAI upheld the Commissioner (Appeals) decision in the case of Revenue vs. Respondent regarding service tax on Business Support Service. The Tribunal found that leasing out a sugar factory constitutes Renting of Immovable Property service, not Business Support Service. The appeal by the Revenue was dismissed.