Custom, Excise & Service Tax Tribunal
M/S. Madras Vanaspathi Ltd vs Cce & St, Pondicherry on 25 January, 2017
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH AT CHENNAI ST/283/2007 (Arising out of Order-in-Appeal No. 159/2007 dated 30.10.2007 passed by the Commissioner of Central Excise (Appeals), Chennai). M/s. Madras Vanaspathi Ltd. : Appellant Vs. CCE & ST, Pondicherry : Respondent
Appearance Shri G. Natarajan, Adv., For the appellant Shri S. Nagalingam, AC (AR), For the respondent CORAM Honble Shri D.N.PANDA, Judicial Member Honble Shri MADHU MOHAN DAMODHAR, Technical Member Date of Hearing/Decision: 25.01.2017 FINAL ORDER No. 40110 / 2017 Per: D.N.Panda, The manufacturing appellant who did not find use of its machinery, leased out that temporarily to M/s. Raghavendra Traders. Such transaction was sought to be taxed under the taxing entry Banking and other Financial Services by the Department.
2. Record reveals that the appellant was not a service provider but it was engaged in manufacture. Leasing its machinery was a solitary transaction and a temporary arrangement. Appellant was neither a Banking company nor a financial institution nor engaged in providing financial services such as hire purchase, leasing finance, etc.
3. In view of the aforesaid factual circumstance, the appellant not being a service provider of leasing as its principle activity, it was not a Banking and other Financial Service provider. Accordingly, the SCN issued under misconception fails to stand. Appeal is thus allowed.
(Dictated and pronounced in open Court)
(MADHU MOHAN DAMODHAR) (D.N. PANDA)
TECHNICAL MEMBER JUDICIAL MEMBER
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