Performance of reciprocal obligations under a project...

Performance of reciprocal obligations under a project development agreement in a common commercial joint venture was not a taxable service, because each co-venturer was discharging its own duties to achieve the venture's object rather than rendering an activity to another for consideration. The Tribunal held that the arrangement for revival of a sick sugar unit, including installation and operation of the power generation facility and supply of inputs for sugar operations, constituted mutual performance by co-venturers and not renting of immovable property or any other service. The service tax demands and penalty were therefore unsustainable and were set aside.