2018 (2) TMI 704 - AT - Central Excise

Business Auxiliary Services - consideration received for transfer of rights and privileges of export of sugar quota - Held that - the issue involved in the case of Commissioner of Central Excise & Service Tax, Meerut-I Versus M/s Bajaj Hindusthan Sugar Ltd. 2017 (10) TMI 1055 - CESTAT ALLAHABAD was same regarding rights and privileges of export of sugar quota and it was held that the said transaction is sale of goods and there was no service involved - appeal dismissed - decided against Revenue.

Summary

Issues:
Interpretation of consideration for transfer of rights and privileges of export of sugar quota as 'Business Auxiliary Service'.

The judgment by the Appellate Tribunal CESTAT, ALLAHABAD involved an appeal filed by Revenue against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals-I), Meerut. The case revolved around the consideration received for the transfer of rights and privileges of export of sugar quota by the respondents engaged in the manufacture of Sugar & Molasses from September 2011 to March 2014. The Revenue contended that the consideration should be treated as 'Business Auxiliary Service' due to services relating to promotion, marketing, or sale of goods. The Tribunal considered a previous Final Order dated 08/09/2017 involving a similar issue with a different period and unit of the same respondent. In that order, it was held that the transaction was a sale of goods without any service involved. Relying on this precedent, the Tribunal dismissed the appeal by Revenue and upheld the impugned order by the Commissioner (Appeals). Consequently, the appeal filed by Revenue was rejected, affirming the decision of the lower authority.

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