2014 (6) TMI 731

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..... rvice. The adjudicating authority also imposed penalties. 3. The brief facts of the case are that the appellants entered into an agreement with M/s. The Kolhapur Sugar Mills Ltd. for managing the business of distillery division and country liquor division. Show Cause notices were issued demanding service tax on the ground that the appellants provided business support service to M/s. The Kolhapur Sugar Mills Ltd. The adjudicating authority confirmed the demands and imposed penalties. 4. The contention of the appellants is that for the same agreement, the Revenue directed M/s. The Kolhapur Sugar Mills Ltd. vide letter dated 23rd August 2006 to pay the service tax under the category of franchise service and M/s. The Kolhapur Sugar Mills Ltd. .....

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..... business support service. As per the provisions of Section 65(105)(zzzq), any service provided or to be provided to any person, by any other person, in relation to support services of business or commerce, in any manner. Section 65 (104c) of the Finance Act during the relevant period provides as under:          "Support services of business or commerce" means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, f .....

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..... g etc. In the present case, as per the agreement, the appellants had undertaken the activity of manufacture and sale of products of the distillery unit itself and profit and loss also is on account of the appellants and not given any support service to M/s. Kolhapur Sugar Mills Ltd. Further we find that on the same agreement, 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  .....

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