Order date – 02 November 2022

 Facts –

• The Appellant, M/s. Naidunia are publishers and printers of newspapers and are registered with the Service Tax Department for providing taxable service of renting of immovable property.
• The appellant is providing services to Webdunia and PPPL and getting income under various heads, but they are paying service tax only under the head ‘Renting of Immovable Property Service’. They are not paying service tax on income received from PPPL and Webdunia, which appropriately falls under the head “Business Support Service”.
• A show-cause notice was issued on 18.04.2013 on the ground that the appellant had short paid the tax for the period 2007-2008 and 2011-2012. 
• Aggrieve appellant had filed an appeal

Issue – 

• Whether the service under head Business Support Service received by the appellant is taxable or not?

Order – 

• The Tribunal perused the submission made by the appellant and found that the appellant have only provided access and use of all the news materials already available with them and have not provided any service in the nature of “Business support Service”. Admittedly, editorial facilities have been provided free of charges and for use of their office space, no charge or rent is fixed. Thus, the amount received of Rs.30,000/- per month from Webdunia is not classifiable under the head “Business Support Service”. 
• The Tribunal also found that both webdunia and PPPl and the appellant are under the same management. Thus, there is element of mutuality in sharing of facility and the available news library. Accordingly, it is held that said receipt is not chargeable to tax (of Rs.30,000/- p.m.) under the head “Business Support Service”. 
• Hence the appeal is allowed and impugned order is set aside.