Transfer Of Approvals/Allotments Acquired From Government Involves Business Support Services, Attracts Service Tax: CESTAT

The CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has ruled that "transfer of approvals/allotments acquired from government involves business support services" and thus attracts service tax. The tribunal clarified that when entities transfer rights or approvals obtained from the government for projects (e.g., wind farms), they are essentially rendering a "business support service" rather than merely dealing with immovable property or rights. This decision brings such transactions under the purview of service tax, ensuring that value generated from facilitating government-granted approvals is taxed appropriately.