The CESTAT upheld the imposition of service tax on the...

The CESTAT upheld the imposition of service tax on the appellants for providing Business Support Services to the respondent, rejecting their characterization of the transactions as transfer of developmental rights in immovable property, which fall outside service tax ambit. The tribunal found that the appellants intentionally concealed the true nature of the transactions to evade tax, justifying invocation of the extended limitation period. The arrangement was correctly treated as taxable business support services rather than a sale of transferable development rights. Consequently, the demand for service tax was confirmed, and the appeal was dismissed for lack of merit.

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