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2016 (6) TMI 366 - AT - Service TaxBusiness Auxiliary Services rendered to various contracted CBU's - Whether or not the appellant have provided taxable services to the bottling units - Contract between appellant and various distilleries - Held that:- in terms of the agreement the contract bottling units are actually manufacturing the branded liquor as job workers for the appellant for which they are getting fixed amount as per the rate approved in terms of the said agreement. The CBU has no freedom of marketing the manufactured products. The sale and distribution of manufactured product is in control of the appellants. Full sale proceeds are received by the appellants and the CBUs are paid amount as per the pre fixed rates. It is relevant to note here that after the amendment carried out w.e.f. 01.10.2009 in the definition of Business Auxiliary Services the CBUs are paying service tax under the said category. This will shows that it is the CBUs who are providing services to appellant not the other way around. It cannot be said that the appellants are promoting the business of bottlers. Therefore, by considering the applicability of Boards circular dated 27.10.2008, the various decided case and also the tax liability on CBUs introduced with effect from 01.09.2009 under Business Auxiliary Services category, it is clear that the impugned order is not sustainable and is set aside. - Decided in favour of appellant
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