2018 (2) TMI 645 - AT - Service Tax

Sale of rights and privilege of export of sugar - levy of service tax - Held that - the transaction in question regarding sale of rights and privilege of export of sugar quota is sale of goods and no service is involved - appeal allowed.

Summary

Issues:
1. Early hearing of appeal based on Hon'ble Supreme Court judgment.
2. Classification of sale of rights and privilege of export of sugar as services for service tax.

Issue 1: Early hearing of appeal based on Hon'ble Supreme Court judgment
The miscellaneous application sought early hearing of the appeal citing the issue being covered by the Hon'ble Supreme Court judgment in the case of Vikas Sales Corporation. The Tribunal had also followed this precedent in the case of CCE&ST, Meerut-I vs. M/s Bajaj Hindustan Sugar Limited. The advocate for the appellant emphasized the relevance of this judgment in the present appeal.

Issue 2: Classification of sale of rights and privilege of export of sugar as services for service tax
The issue in the appeal revolved around the treatment by the Revenue of the sale of rights and privilege of export of sugar as services, leading to a demand for service tax. The Tribunal, in the case of M/s Bajaj Hindustan Sugar Limited, held that such transactions constitute the sale of goods, not services, based on the Supreme Court rulings in Vikas Sales Corporation and Yasha Overseas cases. The Revenue acknowledged that the issue in the present appeal aligned with the decision in the M/s Bajaj Hindustan Sugar Limited case.

The Tribunal, considering the applicability of its previous decision in M/s Bajaj Hindustan Sugar Limited, allowed the miscellaneous application and proceeded to decide the appeal. Relying on the precedent, the Tribunal set aside the impugned order and allowed the appeal with consequential relief to the appellant. Both the miscellaneous application and the appeal were disposed of accordingly in the open court.