Page 150 - GSTL_11th June 2020_Vol 37_Part 2

236 GST LAW TIMES [ Vol. 37
2020 (37) G.S.T.L. 236 (Tri. - Del.)

IN THE CESTAT, PRINCIPAL BENCH, NEW DELHI
[COURT NO. I]
Justice Dilip Gupta, President and Shri P. Venkata Subba Rao, Member (T)
RUCHI INFRASTRUCTURE LTD.
Versus
COMMR. OF C. EX., CUS. & S.T., INDORE
Final Order No. ST/A/51390/2019-CU(DB), dated 22-10-2019 in Appeal
No. ST/52885/2016-DB
Renting of Immovable Property Service - Demand raised on considera-
tion received for renting of warehouses to M.P. Warehousing and Logistics
Corporation (MPWLC) under joint venture agreement - HELD : Plain reading
of arrangement with MPWLC as narrated in show cause notice as well as in
impugned order clearly shows same to be joint venture with income sharing
arrangement - In such relationship neither is there any service provider nor
service recipient but only partners in business - Also, no evidence produced
showing renting of warehouses to MPWLC for use in course of or furtherance
of business or commerce - No renting, no service provider and no service recip-
ient in the said arrangement and hence same not covered by charging section -
Mistake to effect of deduction of TDS by MPWCL while remitting assessee
their share of income in joint venture, not to modify nature of transaction -
Moreover, matter decided in assessee’s favour in assessee’s own case by Bench
- Impugned order unsustainable and set aside - Section 65(105)(zzzz) of Fi-
nance Act, 1994. - Section 65(105)(zzzz) of the Finance Act, 1994 provides for charging
Service Tax on “any service provided or to be provided to any person, by any other per-
son by renting of immovable property or any other service in relation to such renting for
use in the course of or for furtherance of business or commerce”. For a tax to be levied
under this heading, there must be a service provider and a service recipient and the ser-
vice which is provided must be renting of immovable property and such renting must be
for use in the course of furtherance of business or commerce. [paras 13, 14, 15, 16, 17]
Appeal allowed
CASES CITED
Ruchi Infrastructure Ltd. v. Commissioner — Final Order No. 50903/2018,
dated 23-2-2018 by CESTAT, New Delhi — Relied on ........................................................ [Paras 7, 15]
Ruchi Infrastructure Ltd. v. Commissioner — Final Order Nos. 57998-57999/2017,
dated 7-11-2017 by CESTAT, New Delhi — Relied on ........................................................ [Paras 7, 15]
REPRESENTED BY : Shri Rajesh Rawal, Advocate, for the Appellant.
Shri Sanjay Jain, Departmental Representative, for
the Respondent.
[Order per : P. Venkata Subba Rao, Member (T)]. - The appellant is in
the business of storage infrastructure and is registered with the Service Tax De-
partment. M/s. M.P. Warehousing and Logistics Corporation (MPWLC) is a joint
venture between the Central Warehousing Corporation and the Government of
Madhya Pradesh each holding 50% of the shares. MPWLC is an autonomous
body engaged in scientific storage of agricultural and associate produce in the

GST LAW TIMES  11th June 2020  150