#Industrial Lease

CESTAT Chennai rules that the 50% upfront capital contribution by industrial lessees toward water supply infrastructure is a one-time, non-recurring payment exempt under Section 104 of the Finance Act, 1994, and cannot be taxed as a support service. This clarifies the tax treatment of long-term industrial lease arrangements involving shared infrastructure costs, benefiting state industrial promotion bodies and manufacturing tenants nationwide.

MP High Court upholds lease cancellation where the lessee failed to commence industrial production within stipulated timelines, despite multiple extensions. The ruling reinforces that contractual obligations under industrial leases are binding, and non-compliance can lead to termination without violating Article 19(1)(g) rights.