2016 (4) TMI 1144 - AT - Service Tax

Job work - Business Auxiliary Services (BAS) - activity of chilling of milk - Held that - the process of chilling of milk to make it fit for long distance transportation without getting spoiled, is an activity not covered under the Business Auxiliary Service definition. - demand of service tax set aside - Decided in favor of assessee.

Summary

Issues:
Interpretation of whether the activity of chilling milk amounts to providing taxable services under Business Auxiliary Services.

Analysis:
The case involved a dispute regarding the taxability of the appellant's activity of chilling milk on behalf of another entity. The Revenue contended that this activity fell under taxable services categorized as Business Auxiliary Services, leading to demands, interest, and penalties being imposed. The Tribunal, after considering arguments from both sides, referred to a previous decision in the case of Sharma Ice Factory vs. CCE, Jaipur, where it was held that chilling milk for long-distance transportation does not fall under the definition of Business Auxiliary Services. Relying on this precedent, the Tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellant. The judgment clarified that the process of chilling milk for preservation during transportation is not covered under the ambit of Business Auxiliary Services, thus resolving the issue in favor of the appellant.