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October 2013

2013 (31) STR 270 (Bom) Welspun Syntex Ltd vs. Commissioner of Central Excise and Customs

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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Stay – conducting Agreement – Business Support Service vs. Renting of immovable property service – serious triable issue – complete waiver of pre-deposit.

Facts:
The Appellant entered into a conducting agreement for use of its plant, machinery & equipments by the other company for consideration. The department contended that tax was leviable on the same under “support services of business or commerce”.

The Appellant contended that the said activity became taxable with effect from 01-06-2007 under the category of “Renting of Immovable Property Service” and discharged service tax accordingly. It further relied on Fine Switchgear vs. CCE, 2012 (25) STR 443 wherein it was held that when a new entry was carved out subsequently for the purpose of service tax, it had to be held that the same was not covered by any prior existing category of service.

Held:
The Hon. High Court allowing the appeal held that the appellant made out a prima facie case on merits raising a serious triable issue and hence it is eligible for complete waiver of pre-deposit.

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