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2015 (10) TMI 1581 - AT - Service TaxLiability of Service Tax for felling, conversion, debarking, collection, stacking, transportation and delivery of pulp wood from the captive plantation Revenue contends that same falls under Business Auxiliary Services Activity undertaken is of processing or manufacture? Malafide on part of assessee to supress facts of work orders Imposition of penalties pleaded by appellant to be set aside. Held That:- it is not a simple case of cutting of trees and then transporting the cut and debarked wood to the premises of their client. The appellants are required to convert the cut wood into billets of specific sizes, which sizes are fit for use in the pulp plant. - the activities undertaken by them in any case amounts to processing. However, such an activity may amount to manufacture also as contested by the learned advocate. Inasmuch as the issue of manufacture was never raised before the authorities below, we deem it fit to set aside the impugned orders and remand the matters to the original adjudicating authority for the purpose of deciding on the said plea of the assessees Extended period of limitation - Held that:- the Revenue, though in the context of dispute involving the Mysore Paper Mills, was aware of the fact of placing work orders upon various contractors, for extraction collection, debarking stacking of the pulp wood. From this it becomes clear that there was no malafide on the part of the contractors to suppress the fact of placement of work orders upon them - No malafides found on part of assessee. Issue of imposition of penalties in respect of demands which are within the limitation period left to Assistant Commissioner to decisde Order set aside and matter remanded back Appeal disposed in favour of Assessee.
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