TaxTMI 
TaxTMI 
2018 (12) TMI 785
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....der Section 78 of Finance Act, 1994 and Rs. 200/- per day or 2% of such tax under Section 76 ibid have been confirmed. 2. The issue involved in this case is regarding non-payment of service tax on the services rendered by the appellant. The appellant had provided hydra cranes on hire basis along with other material handling equipments as per the order received from their client. The Revenue tried to levy service tax on supply of crane, material handling equipment under "Support Services of Business or Commerce" as defined in Section 65(104c) of the Finance Act, 1994 on the pretext that the services rendered by the appellant is in the form of 'logistic service infrastructure support' service. 3. With the above background, we heard ld. ....
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....ice tax liability under the Act, ibid. (v) Ld. Counsel also contended that the department has tried to cover the activity of appellant under the category of 'support service of business or commerce' as provided under Section 65(104c) of Finance Act, 1994. It has been argued by the department that the services which have been provided by the appellant in the form of supply of cranes and other equipments are nothing, but providing logistic support to various business establishment and hence this activity falls under the category of 'infrastructural support service', which have specifically been included within the scope of 'support service on business' and material handling equipments etc. cannot be considered as support service for busine....
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....f proves that such activity was not under service tax net before 16.5.2005. We are of the view that supply of tangible goods cannot be considered as support service of business or commerce. In this regard, we find it appropriate to reproduce the definition of support service of business or commerce under Section 65(104c) of the Finance Act, 1994, which reads as follows: "Support Service of Business or Commerce" means services provided in relation to business or commerce and includes evaluation of prospective customs, telemarketing, processing of purchase, information and trading of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational ass....
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.... delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing.' 6. On perusal of the above statutory definition, it is clear that providing of equipment on rent is not categorized in any of the activities itemized therein. With regard to the infrastructural services and other transaction processes, the explanation appended to the definition clause has provided that infrastructural support service should include the office utilities and other facilities provided for smooth running of the office establis....