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2018 (2) TMI 1414 - CESTAT NEW DELHIPackaging Service - the appellant received charges for carrying out the activity of blending and packing of tea on behalf of M/s TATA Tea Ltd. - Department were of the opinion that the lease agreement by which the appellant made premises available on lease to M/s TATA Tea Ltd. was nothing but a camouflage for receiving additional consideration for the activity of packing - cum duty benefit. Cum duty benefit - Held that: - the appellant has carried out the activity of blending and packing tea on behalf of M/s TATA Tea Ltd. It stands admitted by the appellant that the activity carried out was covered within the definition of the service of packaging and hence they have admitted their liability to pay service tax on such activity - reliance placed in the case of COMMR OF C. EX & CUS., PATNA Versus ADVANTAGE MEDIA CONSULTANT [2008 (3) TMI 59 - CESTAT KOLKATA], where it was held that when no tax is collected separately, the gross amount has to be adopted to quantify the tax liability treating it as value of taxable service plus service tax payable - the cum tax benefit allowed. Penalty - Lease agreement - receipt of consideration towards lease rent - Held that: - the appellant w.e.f. that date has already started discharging the service tax liability under the above service and under the lease agreement. In the result, we are of the view that the service tax liability arises on the consideration received under the lease agreement only w.e.f. 01/06/2007 and the demand prior to this date is set aside - the service tax under rent of immovable property has already been paid alongwith interest prior to issue of SCN - penalty waived. Appeal allowed in part.
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