2018 (1) TMI 1362 - AT - Service Tax

Business Auxiliary Services - threshing and re-drying operations of tobacco leaves - demand along with interest and penalties for the period April, 2013 to March, 2014 - Held that - Identical issue was decided in the case of M.L. AGRO PRODUCTS LTD. VERSUS COMMISSIONER OF CUS., C. EX. & S.T., GUNTUR 2017 (2) TMI 1355 - CESTAT HYDERABAD , where it was held that the activity of the assessees is in relation to the agriculture and not subject to service tax as a Business Auxiliary Service even before or after the negative list was issued on 1-7-2012 - demand set aside - appeal allowed - decided in favor of appellant.

Summary

The appeal was against Order-in-Original No. VIZ-EXCUS-003-COM-17-2015-16 dated 23.02.2016. The issue was about demand, interest, and penalties for threshing and re-drying operations of tobacco leaves under Business Auxiliary Services. A previous decision by the Bench held that service tax liability does not arise under Business Auxiliary Services. The impugned order was set aside, and the appeal was allowed.