TaxTMI 
TaxTMI 
2017 (6) TMI 476
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....ike oxygen, nitrogen, carbon dioxide and other gases liable to central excise duty. They are registered with the Department for Central Excise and Service Tax purposes. In furtherance of the manufacture and sale of gases, the appellants also installed plant/ machinery/ storage tanks for such gases and all connected pipes, gauges in the factory premises of the buyer. For providing such storage tanks and other accessories, the appellants are getting consideration termed 'facilities service charges'/ 'rental charges'/ 'facility fees'. The Revenue entertained a view that such charges collected by the appellant shall be liable to service tax, considering the said activity as providing infrastructural support covered under tax entry 'business sup....
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....cture support service'. (c) In terms of provisions contained in Article 366 (29A) (d) of the Constitution of India, the transaction is covered by the scope of 'sale' as governed by State laws for VAT. The appellants were paying VAT on such 'facility fee' treating the transaction as that of transfer of right to use which is deemed to be sale under the sale tax law. (d) The tax entry as per Section 65(104c) of the Finance Act, 1994, with reference to 'support services of business or commerce' has to be understood in line with explanation appended to the said entry. The expression 'infrastructural support service' should be considered for its meaning by applying the principal of Nocitur a Sociis. Infrastructural support servi....
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....ed that the appellants provided machinery/ storage facility along with all required accessories which are nothing but infrastructural requirements of the client. The explanation mentioned in the tax entry is only illustrative and does not restrict the scope of the term 'infrastructural support service'. Accordingly, he submitted that the appellants are liable to service tax as confirmed by the lower authorities. 4. We have heard both the sides and perused the appeal records. 5. The point for resolution is whether or not the appellants are liable to service tax in respect of the consideration received from the clients for putting up machinery/ storage facilities for gas and connected accessory in their premises. The consideration recei....
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.... is clarified as under:- "Business entities outsource a number of services for use in business or commerce. These services include transaction processing routine administration processing, routine administration or accountancy, customer relationship management and tele-marketing. There are also business entities which provide infrastructural support such as providing instant offices along with secretarial assistance known as 'Business Centre Services'. It is proposed to tax all such outsourced services. " 8. In the present case, the admitted facts are that the appellants are engaged in the manufacture and sale of various types of industrial gases. They have entered into agreement with various clients for sale of such industrial ....
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.... 9. In Mundra Port & Special Economic Zone Ltd. 2012 (27) STR 171 (Tri. Amd), the Tribunal held providing railway lines inside the port area for the railways to move the wagons cannot be considered as providing infrastructural facilities to the railways. It is a beneficial arrangement for both the parties and there is no service of business support by one to another. 10. The appellants strongly pleaded that the scope of infrastructure support as mentioned under tax entry 'business support service' will not cover the present case. Reliance was placed on the explanation to state that the nature of activities which are to be generally considered as infrastructural support service can be ascertained from such inclusive definition. These are ....