2015 (12) TMI 1496

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....ntenance or Repair services." The respondent herein entered into a contract with Nashik Municipal Corporation (NMC) for the activity of design & drawing, manufacture, supply and installation, testing and successful commissioning of micro processor based energy saving devices and the maintenance thereof. This contract is for five years. It is the case of the Revenue that the amount which has been shared by the respondent with NMC as operating profit is liable to be taxed under the category of Maintenance, Management and Repair services. 4. We find that both the lower authorities in concurrent findings held that the services which are to be taxed are rendered by the respondent to NMC. We reproduce the specific observation of the first appell....

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.... the equipment installed, which are their property. To brand the maintenance and upkeep of the equipment of self, which is done to ensure that maximum energy is saved, is far fetched because remuneration /consideration is directly dependent on the energy saved which in turn can be ensured only through proper maintenance. If no energy is saved, there is no remuneration payable to the respondent. Billing is necessary for the respondent to claim remuneration/consideration based on the energy savings as per the terms of the contract. Therefore, to categorise the services rendered by the respondent during the BOOT period and remuneration received therefor, solely on account of maintenance and repair services rendered to NMC, is without any basis....