Statutory land-allotment receipts and industrial estate charges were mostly held outside service tax, while specific service receipts remained taxable.

Statutory receipts collected by an infrastructure corporation for land allotment, transfer, processing, supervision, rent, interest on delayed payment, occupation charges, water charges, ground rent and cess were treated as charges arising from its enabling statute and not as consideration for taxable services, so they were held outside service tax. By contrast, receipts from Ekamra Hat were classified as Mandap Keeper Service, maintenance charges for upkeep and allied facilities as Maintenance and Repair Service, and contract receipts from construction-related work as Commercial and Industrial Construction Service, making those receipts taxable. The major demand was therefore set aside, with liability sustained only on the identified taxable service receipts and penalty vacated.

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Issues: Whether the charges collected by the statutory infrastructure corporation for allotment and transfer of land, processing, supervision, works income, rent from industrial estates, interest on delayed payments, occupation charges, water charges, ground rent and cess were exigible to service tax, and whether service tax was payable only on the receipts from Ekamra Hat, maintenance charges and contract receipts.

Analysis: The receipts connected with acquisition, allotment, transfer and statutory administration of industrial land were treated as charges collected under the corporation's enabling statute and not as consideration for taxable services. On that reasoning, administrative charges, processing fees, transfer fees, supervision charges, works income from soil testing and equipment hire, rent from industrial estates, interest on delayed payments, occupation charges, water charges, and ground rent and cess were held not taxable under the service categories invoked by the Revenue. The income from Ekamra Hat was held to fall under Mandap Keeper Service rather than Renting of Immovable Property Service. Maintenance charges recovered for upkeep, security, cleaning, power backup and allied services were held to fall within Maintenance and Repair Service. Contract receipts from construction-related work were held to be taxable as Commercial and Industrial Construction Service.

Conclusion: The major part of the demand was set aside, but service tax liability was upheld on the receipts from Ekamra Hat, maintenance charges and contract receipts.

Final Conclusion: The appeals succeeded substantially, with only the identified taxable service receipts remaining confirmed and the penalty vacated.

Ratio Decidendi: Statutory receipts collected in discharge of an authority's land-allotment and infrastructure functions are not taxable merely because they are collected by an instrumentality of the State, but receipts that are in substance consideration for identifiable taxable services remain exigible to service tax.

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