2019 (2) TMI 342 - AT - Service Tax

Nature of activity - sale or service? - proceeds received on sale of Export License of Sugar - Business Auxiliary Service or not? - Held that - The issue is no more res-integra in view of the decision of this Tribunal in the case of Commissioner of Central Excise & Service Tax, Meerut-I vs. Bajaj Hindusthan Sugar Ltd. 2017 (10) TMI 1055 - CESTAT ALLAHABAD where it was held that sale of right and privileges of Export of Sugar Quota amounts to sale of goods and there is no service involved in the transaction - demand set aside - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT ALLAHABAD ruled in favor of the appellant, setting aside the demand of Service Tax and penalty imposed on the sale of Export License of Sugar, as it was considered a sale of goods and not a service. The decision was based on previous rulings by the Hon'ble Supreme Court. The appeal was allowed.