2026-VIL-729-CESTAT-BLR-ST
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SERVICE TAX CESTAT Cases

Service Tax - Renting of Immovable Property Services - The appellant had entered into a tripartite MoU with companies like BIGTEC and Micro Labs along with Indian Institute of Science for collaborating R&D programmes and implemented technologies using cross disciplinary expertise. The appellant rented out their buildings with the infrastructure to the participating companies and collected licence fees – Demand of service tax under 'Renting of Immovable Property Services' – HELD - The tripartite agreement cannot be considered as renting of immovable property against the appellant as the amounts collected are towards licence fees and vary for each month depending upon the extent of research projects undertaken, unlike in a case of renting where a fixed amount is paid for renting of immovable property. Therefore, these amounts cannot be considered as payments towards renting of the infrastructure that belongs to IISC. The demand under this category is set aside - The appeal is partially allowed and remanded only for the purpose of calculation of interest for the amount confirmed and paid - Event Management Services - The appellant provided logistic support for conducting symposium and assistance discussions for the management for eradication of tropical diseases. The Revenue alleged that this service amounted to 'Event Management Services' – HELD - Since the services are for preventing certain tropical diseases, they do not fall under the definition of 'Event Management Services'. Accordingly, the demand against this is set aside - Scientific or Technical Consultancy Services - The appellant received amounts from various clients for conducting certain research on scientific and technical aspects through tripartite agreements between IISC, the appellant and various other organisations - HELD - Since these amounts are towards such research-oriented programmes, they are rightly classifiable 'Scientific or Technical Consultancy Services' and the demand on this account is upheld. The audit was conducted from September 2008 and the show-cause notice was issued invoking extended period of limitation demanding service tax for the period from 2004 to 2008. The fact that the appellant was into rendering Scientific or Technical Consultancy Services came to the knowledge of the department only after perusal of various documents, therefore, they are justified in invoking the extended period of limitation. The appellant has paid the tax and the 25% penalty towards the above demand but no interest payment has been brought to the notice. The matter is remanded for quantification of interest - The appeal is partially allowed and remanded only for the purpose of calculation of interest for the amount confirmed and paid.
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GSTAT Appeal filed wrongly...
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