Friday, 22 November 2013

Business Support Service vs. Renting of immovable property service - serious triable issue - complete waiver of pre-deposit.


2013 (31) STR 270 (Born) Welspun Syntex ltd vs. Commissioner of Central Excise and Custom
Facts:
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.
Held:
The Hon. High Court allowing the appeal held that the appellant made out 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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