Custom, Excise & Service Tax Tribunal
Cce, Jalandhar vs M/S. Batala Co-Operative Sugar Mills ... on 1 March, 2012
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066. BENCH-,,,,,DB Service Tax Appeal No.ST/799-800/2008 [Arising out of Order-in-Appeal No.406-409/CE/APPL/JAL/08 dated 26.08.2008 passed by the Commissioner (Appeals), Jalandhar, Chandigarh]. CCE, Jalandhar Appellant Vs. M/s. Batala Co-Operative Sugar Mills Ltd. M/s. Gurdaspur Co-Operative Sugar Mills Ltd. Respondent
Present for the Appellant : Shri K.K. Jaiswal, DR
Present for the Respondent:Shri.Vikrant Kakaria, Advocate
Coram: Honble Mr.D.N.Panda, Judicial Member
Honble Mr. Rakesh Kumar, Technical Member
Date of Hearing/Decision: 08.02.2012
ORDER NO. _______________ DATED: _________
PER: D.N.PANDA
Buffer Subsidy received by the respondents was intended to be taxed by the Revenue in both the cases. Revenue being aggrieved by first appellate order has come in appeal for reversal of such order. Buffer subsidy does not form part of the consideration received by service provider from the service recipient. This subsidy is paid to the recipient for the buffer stock of sugar maintained in accordance with the regulatory measures of Ministry of Consumer Affairs. When such a subsidy is given, nothing is demonstrated by the Revenue that those were paid by state to the respondents. When the payment did not come from recipient of service that was held not to be taxed in the hands of the respondents. Such view of the Tribunal has been confirmed in the case of CCE, Chandigarh vs. Nahar Industries Enterprises Ltd. reported in 2010 (19) STR 166 (P&H). When the issue is settled, there is no further scope to allow Revenues appeal. Accordingly, both appeals are dismissed.
[Dictated & Pronounced in the open Court].
(D.N.PANDA) JUDICIAL MEMBER (RAKESH KUMAR) TECHNICAL MEMBER Anita