2016 (41) STR 454 (Tri.-Mum.) Commr. Of C Ex. Nashik vs. Sahastronics Controls Pvt. Ltd.

Facts
The Respondent was awarded with a contract on build, own, operate and transfer (BOOT) mode by Nasik Municipal Corporation for micro processor based energy saving devices and its maintenance. As per the contract, post commencement of operations, the operations and maintenance of these devices was to be done by the Respondent and if a device/s did not function optimally, then to that extent, they would not get remuneration. The remuneration was fixed as a percentage of operating profit to be arrived after reducing the cost from the savings in electricity consumption. Show Cause Notice was issued proposing to demand service tax on operating profit. The adjudicating and first appellate authority took a view that service was rendered to self as Respondent was required to maintain the equipments in order to earn revenue and the ownership of the equipment was with them and accordingly, dropped the demand. The department challenged the order before the Tribunal.

Held
The Tribunal observed that the lower authorities have given their findings on the basis of the facts and documents on record. As per grounds of appeal, no allegations are made which contradicts with the findings of the lower authority and hence the Appeal was dismissed.