9911796707
TMI Blog2014 (9) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... provision of Business Auxiliary Services, for or on behalf of IHC. On this analysis, the petitioner has made out a strong prima facie case, in respect of Service Tax assessed on Business Auxiliary Service. Regarding cenvat credit - Held that:- it is asserted that since the credit availed has been reversed though subsequently, the petitioner would be entitled to the benefit of abatement under Notification No. 1/2006-S.T., which was denied by the adjudicating authority. Prima facie case is in favor of assessee - stay granted. - ST/3896/2012 - Stay Order No. ST/50144/2014-CU(DB) and Misc. Order No. ST/50156/2014-CU(DB) - Dated:- 16-1-2014 - G. Raghuram, President and Shri Rakesh Kumar , Member (T) Ms. L. Charanya, Advocate, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment internal maintenance of common areas, maintenance, replacement of capital equipments, etc. The obligations of the petitioner under the agreement include efficient management and operation of the facilities licensed to it, incurrence of expenses in relation to such facilities; responsibility for internal maintenance, janitorial expenses, security in the guest house and other parts of the facilities and responsibility to operate the facility while protecting the image and status of IHC besides observing all the requirements including those pertaining to services in the areas of food and beverages. Under the agreement, IHC licensed its existing premises and other infrastructure to be developed to the petitioner, in recognition of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tipulates that the responsibility for maintenance of hospitality facilities (other than the centralized services) and the promotion, publicity, advertisement, janitorial services, security and valet service and credit card charges is of the petitioner but part of the expenditure would be borne by the other party namely, IHC, subject to the ceiling limits stipulated in clause 13.2. 6. Revenue while refraining from levying Service Tax on the petitioner s share of the gross operating receipt under Article IX of the agreement, initiated proceedings for recovery of Service Tax, interest and penalties only on the component of reimbursement of the costs incurred (by the petitioner) for providing facilities enumerated in the clause 13.1, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses and those incurred on consumables are for providing amenities and facilities for members/customers of the premises. In addition, marketing, promotional and business development expenses, all sales promotion related brochures, tariff sheets, mailers, etc. and other sale promotion activities; and costs incurred for entertainment, artists fees, shows, etc. are to be borne initially by the petitioner but reimbursible by IHC, subject to ceiling limits specified in clause 13.2 of the agreement. 9. On a true and fair construction of the relevant clause of the agreement, we do not consider these activities i.e. those covered under clause 13.1 to fall within the ambit of Business Auxiliary Service under clause (i) or (vi) of Section 65(19) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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