TMI Blog2014 (6) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... almost for the same period, the Revenue directed M/s. Kolhapur Sugar Mills Ltd. to pay service tax under the category of franchise service vide letter dated 23rd August 2006 and M/s. Kolhapur Sugar Mills Ltd. are paying service tax under the category of franchise service regularly and this fact is not in dispute. In these circumstances, we find that the appellants had not provided any service which can be termed as 'business support service' as provided under Section 65 (104c) of the Finance Act - Decided in favour of assessee. - Appeal Nos.ST/595/12 & ST/86405/13-Mum - Final Order Nos. A/723-724/2014-WZB/C-I(CSTB) - Dated:- 20-5-2014 - S S Kang and P K Jain, JJ. For the Appellant : Shri S S Gupta, CA For the Respondent: Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distillery is on account of the appellants. The appellants are not receiving any amount from M/s. The Kolhapur Sugar Mills Ltd. As the appellants have undertaken the activity of manufacture and distribution of the products manufactured in the distillery division, therefore it cannot be said that the appellants have provided any business support service to M/s. The Kolhapur Sugar Mills Ltd. The appellants relied upon the definition of 'business support service' as provided under the Finance Act. In these circumstances, the contention is that the demand is not sustainable. 6. The Revenue relied upon the findings of the lower authority and submitted that the appellants are undertaking manufacture and sale of products of the distille ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity. 8. We have gone through the agreement between the appellants and M/s. Kolhapur Sugar Mills Ltd. Under the agreement, the appellants agreed to pay M/s. Kolhapur Sugar Mills an amount of Rs.30 lakhs towards the use infrastructure of distillery unit for the manufacture of products. As per clause 2 of the agreement, all profits and losses in respect of manufacture and sale of the products in the distillery division are on account of the appellants. The appellants had actually undertaken the distillery unit of M/s. Kolhapur Sugar Mills Ltd. and also undertaken the manufacturing activity as well as the sale of products. There is no evidence on record to show that the appellants had received any amount from M/s. Kolhapur Sugar Mills Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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