2014 (8) TMI 480 - AT - Service Tax

Bottling the LPG in cylinders - Business Auxiliary Service - Held that - In the case of Batra Brothers reported in 2006 (9) TMI 93 - COMMISSIONER OF CUSTOMS AND C. EX and Bharat Petroleum Corporation Ltd. reported in 2008 (8) TMI 776 - COMMISSIONER OF CENTRAL EXCISE (APPEALS) PUNE-II the Commissioner (Appeals) observed that bottling the LPG in cylinders comes under Packaging Service and in this case the adjudicating authority has brought it under the category of Business Auxiliary Service as the activity undertaken by the applicants is ancillary to the sale and marketing of the product. Prima facie we do not find the activity undertaken by the applicants falls under Business Auxiliary Service as alleged against the applicants therefore applicants had made out a case for 100% waiver of pre-deposit. Accordingly we waive the entire amount of duty interest and penalty and stay recovery thereof pending the appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the applicants, waiving a service tax demand of Rs. 17,33,283/- for bottling LPG in cylinders, considering it as 'Packaging Service' rather than Business Auxiliary Service. The entire amount of duty, interest, and penalty was waived pending appeal.