2019 (9) TMI 647 - AT - Service Tax

Classification of Services - Business Auxiliary Service or not - contribution made by members which are sugar Mills - demand of service tax alongwith penalty - HELD THAT - The issue stands covered by the decision in the case of M/S UP CO OPERATIVE SUGAR FACTORIES FEDERATION LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE S.T., LUCKNOW 2017 (8) TMI 1004 - CESTAT ALLAHABAD where it was held that no service tax would be chargeable on the amount being received by the appellant from its Member Sugar Mills - demand set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Service Tax demand confirmation under 'Business Auxiliary Service' category.

Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD pertains to the confirmation of a Service Tax demand amounting to ?2.31 crore against the appellant, coupled with a penalty imposition under the 'Business Auxiliary Service' category. The Tribunal found that the services provided to the appellant by Co-operative sugar factories fell within this specified category. Both parties acknowledged that a previous decision by the Tribunal in a related case, M/s U.P. Co Operative Sugar Factories Federation Ltd. V/s Commissioner of Central Excise & Service Tax, Lucknow, Final Order No.70705/2017 dated 12 April, 2017, covered the issue at hand. Consequently, the Tribunal, in line with the aforementioned order, set aside the impugned order and allowed the appeal to that extent. The judgment was pronounced in open court by the members of the Tribunal, Mrs. Archana Wadhwa and Mr. Anil G. Shakkwar.