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TMI Blog2018 (12) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008, which necessitated the creation of new entry for such type of services rendered by the service provider. It was the background against which the legislature created a new category of services in the name of ‘supply of tangible goods’. The introduction of new category of service itself proves that such activity was not under service tax net before 16.5.2005 - supply of tangible goods cannot be considered as support service of business or commerce. ‘Infrastructural Support Services” primarily relates to the logistic support system, such as the office premises and other office utilities pertaining to the smooth functioning of office and hence supply of cranes and material handling equipment can by no stretch of imagination can be brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined in Section 65(104c) of the Finance Act, 1994 on the pretext that the services rendered by the appellant is in the form of 'logistic service infrastructure support' service. 3. With the above background, we heard ld. Advocate on behalf of the appellant, who has stated that the appellant is providing only hydra crane and material handling equipment on a hire basis which not rendering in the business support service which is evident from the contract entered by the appellant. The arguments submitted by ld. Counsel is as follows: (i) That they are not providing any 'business support service' as held in the impugned order are engaged in supply of tangible goods, which has come under the service tax liability with effect from 16.5.2008 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'infrastructural support service', which have specifically been included within the scope of 'support service on business' and 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. In support of his argument, he has relied upon the judgement of This Tribunal in the case of Paradise Investments Vs. CC, Jaipur - 2017 (4) GSTL 315 (Tri.-Del.). 4. Per contra, the ld. AR for the Revenue has supported the impugned order under which the demand has been confirmed in the category of 'support service of business or commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing of purchase, 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, panty and security." A bare perusal of the definition makes it clear that 'infrastructural Support Services" primarily relates to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 setting aside the same, we al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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