2015 (7) TMI 348 - AT - Service Tax

Waiver of pre deposit - Business Auxiliary Service - Penalty u/s 76 & 77 - chilling of milk - Held that - chilling of milk does not amount to the activity of processing or manufacture falling under Business Auxiliary Service. - Decision in the case of Sharma Ice Factory vs. C.C.E., Jaipur I 2014 (6) TMI 493 - CESTAT NEW DELHI followed - Stay granted.

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled in favor of the appellant providing milk chilling service, stating that it does not amount to Business Auxiliary Service. The demand for service tax was reduced to Rs. 90,775, with penalties imposed under Section 77 of the Finance Act, 1994. The Tribunal granted a full waiver and stayed further recovery proceedings pending appeal.