2018 (11) TMI 363 - AT - Service Tax

Liability of Service Tax - various Maintenance Charges collected by Gujarat Industrial Development Corporation from the industrial plot owners - Held that - The issue is no longer res-integra as in the light of the judgment of Hon ble Bombay High Court in the case of Maharashtra Industrial Development Corporation 2018 (2) TMI 289 - CESTAT MUMBAI , there is no taxability on Maintenance Charges collected by State Industrial Development Corporation from the industrial plot owners - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Whether Maintenance Charges collected by Gujarat Industrial Development Corporation from industrial plot owners are liable for service tax.

Analysis:
The main issue in this case pertains to the taxability of Maintenance Charges collected by Gujarat Industrial Development Corporation from industrial plot owners. The appellant's counsel argued that a similar issue had been settled by the Hon'ble Bombay High Court in the case of Maharashtra Industrial Development Corporation, where it was held that such charges are not liable for service tax. The appellant relied on various judgments, including Maharashtra Industrial Development Corporation 2018 (2) TMI 289-CESTAT Mumbai and Chhattisgarh State Industrial Development Corporation Ltd 2016 (6) TMI 367-CESTAT New Delhi. On the other hand, the Revenue, represented by the Joint Commissioner, reiterated the findings of the impugned order and cited judgments like Jeevanlal Joitaram Patel & Co. Vs. CCE, Ahmedabad 2011 (23) STR 386 (Tri.Ahmd.) and Chhattisgarh State Industrial Development Corporation Vs. CCE., Raipur 2011 (24) STR 494 (Tri.Del).

Upon careful consideration of the submissions and perusal of records, the Tribunal found that the issue had already been settled by the judgments of the Hon'ble Bombay High Court and various Tribunal orders. The Tribunal referred to the judgments in the case of Maharashtra Industrial Development Corporation and Chhattisgarh State Industrial Development Corporation Ltd, where it was held that Maintenance Charges collected by State Industrial Development Corporations from industrial plot owners are not taxable under service tax. Consequently, the impugned order was set aside, and the appeal was allowed. The Tribunal's decision was based on the precedent set by the aforementioned judgments, leading to the non-taxability of Maintenance Charges in this case.