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2022 (5) TMI 77 - AT - Service TaxClassification of services - Business Auxiliary Service or not - Storage and Warehousing Services or not - appellant purchases liquor from distilleries from in and outside State of Karnataka and distribute the same in the State - appellants also store liquor for a maximum period of 90 days without charging any storage fee - period October 2011 to September 2012 - HELD THAT:- The case is no longer res integra as submitted by the learned counsel for the appellant - this very Bench in the appellant’s own case KARNATAKASTATE BEVERAGES CORPN. LTD. VERSUS COMMR. OF ST, BANGALORE [2007 (8) TMI 55 - CESTAT, BANGALORE] has held that there is also no justification for imposing such a savage penalty on a State Government Corporation. In the present case, the appellants have discharged their statutory functions as the mandate given by the Karnataka State Excise Act and Rules thereunder and have not rendered any services such as ‘Business Auxiliary Service’ and ‘Storage and Warehousing Service’. Therefore, the payments received by them in the form of commission or warehousing charges are not exigible to service tax - the impugned orders as far as they relate to the party’s appeals are not sustainable and needs to be set aside. Appeal allowed - decided in favor of appellant.
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