2008 (10) TMI 172 - AT - Service Tax

Whether the storage of sugar by the sugar mills as per the instructions of the Government for maintaining buffer stock would amount to sugar mills providing the storage and warehousing service to the Government - whether the amount received by the Sugar Mills are liable to service tax - issue is squarely covered by the Tribunal s judgment in the case of Nawanshahr Cooperative Sugar Mills Ltd. in appellant s favour - stay is granted

Summary

The Appellate Tribunal CESTAT, New Delhi ruled that storage of sugar by sugar mills for maintaining buffer stock, compensated by the Government, does not attract service tax. The case was similar to a previous judgment and the duty and penalty were waived with recovery stayed.