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TMI Blog2018 (6) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... ich were leviable to service tax and therefore, the legislature in their prudence had brought in a new category of service under the name of “supply of tangible goods” service for leviability of service tax under the Finance Act, 1994. The activity of supply of material handling equipment, such as, cranes etc., is not leviable under the category of “Support Service of Business or Commerce” and this activity has come under the scope of service tax under a category of “supply of tangible goods” w.e.f.16.05.2008 - appeal allowed - decided in favor of appellant. - S. T. Appeal No. 147/09 - Order No. FO/76354/2018 - Dated:- 19-6-2018 - HON BLE SHRI P. K. CHOUDHARY, JUDICIAL MEMBER And HON BLE SHRI C. L. MAHAR, TECHNICAL MEMBER Shri A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.2009. The ld.Commissioner has confirmed service tax totaling to an amount of ₹ 1,47,07,296/- and equal amount of the penalty has also been imposed under Section 78 of the Finance Act, 1994. Penalty under Section 76 of the Finance Act, has also been confirmed. The ld.Commissioner has also confirmed the interest on the above mentioned confirmed service tax amount under Section 75 of the Finance Act, 1994. 3. The appellants are before us against the above mentioned Order-in-Original dated 23.03.2009. The basic arguments of the ld.Counsel appearing on behalf of the appellants are as follows : (i) That the service tax on supply of tangible goods has come under the service tax leviability w.e.f.16.05.2008 and before that there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices , which have specifically been included within the scope of support service on business and commerce. The ld.Counsel has contended that the supply of cranes, material handling equipments etc., cannot be considered as support service for business or commerce as the definition provided in the Finance Act, 1994 for Support Service of Business or Commerce , does not cover the activity of renting of the equipments to the business establishment. He has also relied upon the judgement of the Tribunal in the case of Paradise Investments Vs. Commr. of Central Excise, Jaipur : 2017 (4) G.S.T.L. 315 (Tri.-Del.). 4. The ld.D.R. for the Revenue has reiterated the arguments, on which the Order-in-Original dated 23.03.2009, has proceeded to con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , information and trading of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer services and pricing policies, infrastructural support services and other transaction processing. Explanation For the purposes of this clause, the expression infrastructural support services includes providing office along with office utilities, lounge, reception with competent personnel to handle message, secretarial services, internet and telecom facilities, pantry and security. A quick glance at the above definition makes it clear that Infrastructural Support Services as provided in the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the explanation appended to the definition clause has provided that infrastructural support service should include the office utilities and other facilities provided for smooth running of the office establishment. 7.We find that the appellant is no way connected to the business establishment for running the business of the client and is only supplying the equipment on rental basis. Providing of equipment on rent, per se cannot be called infrastructure support service. The scope of BSS as defined cannot cover simple renting of equipments. We are of the view that service tax demand under such category of service in the case of appellant cannot be sustained. Accordingly, we do not find any merits in the impugned order and after settin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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