2009 (4) TMI 96 - AT - Service Tax

The issue of taxability in respect of packaging and bottling has been settled by the decision of the Larger Bench of the Hon ble M.P. High Court holding that the activity of packaging and bottling of liquor is not liable to service tax. In view of the said decision, we set aside the impugned order and allow the appeal filed by M/s. Agarwal Distillers Pvt. Ltd. and dismiss the appeal filed by the department.

Summary

The appellate tribunal ruled in favor of M/s. Agarwal Distillers Pvt. Ltd., stating that packaging and bottling of liquor is not liable to service tax. The penalty imposed by the department was dropped. The decision was based on a previous ruling by the Hon'ble M.P. High Court. The appeal by M/s. Agarwal Distillers was allowed, while the appeal by the department was dismissed.