2026-VIL-312-CESTAT-KOL-ST
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SERVICE TAX CESTAT Cases

Service Tax - Taxability of 'business support services' and 'renting of immovable property service' - Appellant entered into an agreement with M/s. Tata Consultancy Services (TCS) to provide various facilities and services at its campus for conducting a training program – Demand of service tax under the categories of 'business support service', 'renting of immovable property service', and 'management or business consultancy service' - Whether the services provided by the appellant, such as providing infrastructure facilities, accommodation, and general requirements, fall under the category of 'Business Support Services' under Section 65(104c) of the Finance Act, 1994 – HELD – Under the definition of Business support services, the infrastructural support services include providing office along with office utilities, lounge, reception, etc. - The services provided by the appellant to TCS, including providing office space, class rooms, faculty rooms, library, computer lab, conference hall, auditorium, and accommodation, fall within the scope of 'infrastructural support services' as defined in the explanation to Section 65(104c). Therefore, the services rendered by the appellant are appropriately classifiable under the category of ‘business support services’ and liable to service tax. However, the demand pertaining to the extended period of limitation is set aside as the Revenue failed to establish any suppression of facts with the intent to evade tax - The demand of service tax under the categories of 'business support service' and 'renting of immovable property service' for the normal period of limitation, along with interest is confirmed. The demands pertaining to the extended period of limitation and the demand under the category of 'management or business consultancy service' is set aside – The appeal is partly allowed - Whether the rental income received by the appellant from Allahabad Bank and R&B Catering Services is taxable under the category of 'renting of immovable property service' under Section 65(90a) of the Finance Act, 1994 – HELD - The rental income received by the appellant is taxable under the category of 'renting of immovable property service'. However, the demand pertaining to the extended period of limitation is set aside as the issue of taxability of 'renting of immovable property service' was under litigation during the relevant period, and the appellant cannot be attributed with any mala fide intent in not paying the service tax - Whether the charges received by the appellant for conducting training programs and seminars for government departments are taxable under the category of 'management or business consultancy service' under Section 65(65) of the Finance Act, 1994 – HELD - The services rendered by the appellant for conducting training programs and seminars for government departments do not fall within the scope of the definition of 'management or business consultancy service'. Accordingly, the Tribunal set aside the demand of service tax under this category.
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