2022 (11) TMI 265

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....e same group/management, there are other companies viz. Webduniya.com Pvt. Ltd. and Print Pack Pvt. Ltd. All these are located in the same office building or factory premises. During Feb., 2013, the Department conducted audit, wherein it was observed that the appellant have entered into two agreements, first with Webdunia. Com India Ltd.  ('webdunia' for short) and the second with Print Pack Pvt. Ltd. ("PPPL" for short). The first agreement dated 1.3.2000 is between Naidunia and Webdunia, inter alia, provides that Naidunia shall provide entire print materials published in its Hindi Daily 'Naidunia to Webdunia'. Naidunia shall also provide entire materials available with them in their library for reference and use to Webdunia. Naidunia ....

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.... the machinery at the factory complex of Naidunia. For these facilities, Naidunia is charging "facility sharing charges" from PPPL under various heads like machine lease rent charges, rent charges, computer rent charges and facility share charges. AS per agreement, PPPL will pay Rs.2,25,000/- as a monthly compensation, all inclusive as consideration for the facilities (including electricity) provided by Naidunia. 4. Thus, it appeared that the appellant - Naidunia is providing services to Webdunia and PPPL and getting income under various heads, but they are paying service tax only under the head 'Renting of Immovable Property Service' . They are not paying service tax on income received from PPPL and Webdunia, which appropriately falls u....

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....f this appellant. On the basis of the sub-meter, the electricity bill is bifurcated between the various entities under the same management. Thus, there is no element of service involved. Electricity is goods chargeable to central excise under CETA. The appellant has also urged that extended period of limitation is not invokable, as all transactions are properly recorded in the books of accounts maintained in the normal course of business. The issue is wholly interpretational and hence, extended period is not invokable. The appellant has also contested the imposition of penalty. Ld. Commissioner (Appeals) framed the following issues:- (i) Whether the facility sharing charges amounting to Rs.1,73,50,000/- are reimbursement of electri....

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....operty Service" along with "Facility Sharing Service". 7. Assailing the demand, the appellant urges that there is no dispute about the fact that the appellant have shared the electricity received from MPEB with Web Dunia, PPPL and others on proportionate (reimbursement) basis. Admittedly, the appellant has not generated electricity. Further, electricity is goods and not a service. Thus, the same is outside the scope of service tax. The appellant placed reliance on the following rulings:- (1) South Eastern Coal Fields Ltd. - 2019 (22) GSTL 393 (T-Delhi) (2) Logix Soft Tel Pvt. Ltd. - 2019 (20) GSTL 545 (T-All.) (3) Kiran Gems Pvt. Ltd. - 2019 (25)GSTL 62 (T-Ahmd.) 8. Ld. Authorised Representative relies on th....