2008 (7) TMI 155 - AT - Service Tax

Respondents are managing dharma kanta and were issuing weighment slips in respect of goods weighed on dharm kanta. The case of the Revenue is that the respondents are providing business auxiliary service - As respondents are not concerned with the sale or marketing of the goods therefore can not be said to be provider incidental or auxiliary service to any activity such as promotion or marketing or sale of goods produced

Summary

Issues:
Appeal against demand of service tax on the ground of not providing business auxiliary service.

Analysis:
The Revenue filed appeals against an order setting aside the demand of service tax, arguing that the respondents were not providing business auxiliary service as per Section 69 of the Finance Act, 1994. The respondents were managing a dharma kanta and issuing weighment slips for goods weighed on it. The Revenue contended that the respondents were providing business auxiliary service. However, the Tribunal had previously settled this issue in another case, stating that the respondents, as owners of the dharma kanta, were only undertaking the weighment of goods and were not involved in the promotion, marketing, or sale of goods belonging to clients. Therefore, the Tribunal concluded that the respondents were not providing any incidental or auxiliary service related to the promotion, marketing, or sale of goods. Consequently, the appeals were dismissed based on the precedent set by the Tribunal in the previous case.

In light of the Tribunal's previous decision and reasoning, it was found that there was no merit in the appeals filed by the Revenue. The Tribunal upheld the impugned orders and dismissed the appeals, along with disposing of the cross objection in the same terms. The operative part of the order was pronounced in the Open Court, confirming the dismissal of the appeals based on the established interpretation of the law regarding business auxiliary services.