2018 (8) TMI 1291 - HC - Service Tax

Business Support Services - activities/services provided by the Assessee to its clients/buyers of installing plant and machinery and storage tanks for storage of gases sold by it and of installing all connected pipes, gauges etc. in the factory of its clients/buyers - the contention is that the matter ought to have been remitted back to the authority to distinguish between the excisable goods like oxygen and service rendered - Held that - The Tribunal has rightly held that the gas storage facility in industrial unit are not fitting into overall scope of infrastructural support services - reliance placed in the case of ROYAL WESTERN INDIA TURF CLUB LTD VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI 2012 (11) TMI 526 - CESTAT, MUMBAI , where it was held that there is no merit in the argument that the renting of office space to the caterer/book maker is liable to be classified as business support service - appeal dismissed - decided against appellant.

Issues:
Delay in filing appeals, common question of law and facts, challenge to Tribunal's judgment, substantial question of law regarding taxable entry "Business Support Services," interpretation of service agreements, distinction between excisable goods and services, applicability of infrastructural support services.

Analysis:
1. Delay in filing appeals:
The High Court condoned the delay in filing the appeals and allowed the applications under the Limitation Act, enabling the appeals to proceed despite the delay.

2. Common question of law and facts:
The appeals involved a common question of law and facts, leading to a single judgment being delivered for all the appeals.

3. Challenge to Tribunal's judgment:
The appellant challenged the Tribunal's decision, which had reversed the orders of the CIT(A) and the Original Authority in favor of the assessee-respondent. The issue revolved around the classification of services provided by the assessee.

4. Substantial question of law - Taxable entry "Business Support Services":
The counsel for the appellant framed a substantial question of law regarding whether the services provided by the assessee constituted "Business Support Services" under section 65(104C) of the Finance Act, 1994. The issue required a detailed examination of the nature of services provided by the assessee.

5. Interpretation of service agreements:
The Tribunal's observations highlighted the nature of agreements entered into by the appellants with clients, emphasizing the close link between the gas storage facilities provided and the sale of gases. The agreements were deemed beneficial for both parties, leading to the conclusion that the services provided did not fall under the scope of business support services.

6. Distinction between excisable goods and services:
The appellant argued for a distinction between excisable goods like oxygen and the services rendered, suggesting that the matter should have been remitted back to the authority for further clarification.

7. Applicability of infrastructural support services:
The Tribunal, supported by the High Court, held that the gas storage facilities provided by the appellants did not fall within the scope of infrastructural support services. The decisions of Royal Western India and South Gujarat Roofing Tiles Manufacturers were cited in support of this conclusion.

8. Conclusion and dismissal of appeals:
Based on the Tribunal's observations and the legal interpretation provided, the High Court dismissed the appeals, stating that no substantial question of law arose from the matter. The decision was in line with the Tribunal's findings regarding the classification of the services provided by the appellants.

This comprehensive analysis of the judgment addresses the various issues involved and the reasoning behind the High Court's decision in each aspect of the case.

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