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Appellant entered into agreement with NTBCL to collect fees from the users of the bridge and also carry out various other related activities — Department alleged that the services be taxed under the head BAS — Appellant contended to classify their services under ‘Management, Maintenance and Repair of Immovable Property Services’ — Held that person liable to collect toll is liable to pay service tax under ‘Management, Maintenance and Repair of Immovable Property services’.
Facts:
The appellant was sub-contracted by M/s. Noida Toll Bridge Company Ltd. (NTBCL) for specified functions relating to operations of Delhi-Noida bridge. It was contended by the authority that the agreement entered with the appellant clearly pointed out various services to be provided by them taxable under the category of Business Auxiliary services.
Appellant argued that toll levied by municipal corporation is a duty and tax levied by the Government is exempt from service tax liability under Notification No. 13/2004- S.T.
Further, the appellant contended that they were not providing any Business Auxilary services (BAS). The said services if at all taxable are in the nature of ‘Management, Maintenance and Repair of Immovable Property service’.
The appellant submitted that the customer care services envisaged under BAS were not applicable to the facts of this case as there is no third party involved.
Held:
It was held that the persons who are using the bridge cannot be called customers of either the appellant or NTBCL as the same would not fit into the definition of customers as defined in advanced Black Law Lexicon. Also, the appellant cannot be taxed under Business Auxiliary services as it was very clearly evident that NTBCL was not the client of the appellant as the appellant was not promoting any services of NTBCL. The services were in the nature of ‘Management, Maintenance and Repair of Immovable Property services’ as correctly contended by appellant.
