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TMI Blog2017 (10) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... argued that the appellants are engaged in the business of manufacturing and bottling of alcoholic beverages. The appellants hold Potable Liquor License (PLL) and Rectified Sprit License (RS II). The appellants entered into an agreement with M/s. Diageo India Pvt. Ltd. under which the appellants leased their licenses M/s. Diegeo India Pvt. Ltd. The appellants there after entered into an agreement for bottling on behalf of M/s. Diageo India Pvt. Ltd. at their plant and recovered bottling charges for the same. During the period January, 2008 to July, 2008, the appellants allegedly collected the Service Tax amounting to Rs. 18,54,180/- but did not deposit it to the Revenue, consequently the demand under Section 73 (1) of the Finance Act, 1994 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of immovable property to appearing in the definition of taxable service under section 65 (105) (zzzz). He took us through the provisions of the agreement to assert that the job charges fixed per case were received against manufacture of alcoholic beverages for which the appellant have used their entire Plant, Machinery and Man Power. He pointed out that the fee of Rs. 5,00,000/- per month was received only against the license namely PLL and RS II license on this basis. 2.2. He pointed out that Rs. 5,91,502/- has been demanded as Service Tax for the month of October, 2009 to December, 2009. The appellant had given the details of the amount paid and the challan numbers in their defence reply to the Commissioner. The Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itself is not value. He also argued that Potable Liquor License (PLL) is a license to manufacture and sell the noted varieties of liquor and the license gives permission only manufacture at the specified premises and nowhere else. He argued that the license is worthless without the factory which has been license. He took us through various provisions of Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966 to ascertain that the licenses has no meaning without the factory and both cannot be delinked in any manner he also argued that license is worthless without the factory and factory is worthless without the license. 4. We have gone through the rival submissions. We find that the appellants have obtained PLL unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Commissioner, State Excise, Maharashtra State and Office of Collector, Aurangabad has respectively granted its approval ("Approval") to KAM to lease its PLL and RSII to Diageo India for a period of 10 years. Definitions & Interpretation (n) "Job Contract/job Contracted//Job Contracting" shall mean and include the entire process of bottling of the Products on job contract basis in accordance with the Specifications to make the Products available for sale, including spirit handling, blending, diluting with DMW, bottling and packaging. (o) "Period" shall have the meaning assigned to it under Clause 9. (p) "Person" means any individual, sole proprietorship, unincorporated association, unincorporated organization, body corporate, corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s granted to the person. The licence given to a person in respect of a manufactory can be transferred to another manufactory on another site in the name of same person in terms of Rule 4-D & 16-4 of the said Rules. In view of above, it is apparent that while the licence is granted in respect of the manufactory it is not granted to the manufactory but to the person. In these circumstances, it is possible for a person to give on lease the licence while keeping the manufactory in his control. In this regard Rule 3 of the said Rules becomes relevant. The said Rule 3 reads as under: 3. Grant of distillery licence.-(1) Any person desiring to construct and work a distillery for the manufacture of spirit shall make an application for a licence in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the licence and further that there is no objection to granting the licence applied for, grant the applicant a licence in Form 'I' on payment of 1 [a licence fee (inclusive of consideration) 2 [at the rates given in the Table below] or may after recording its reasons, refuse to grant the licence, and inform the Commissioner of the decision : From the said Rule it is apparent that licence can be granted even before the manufactory comes into existence. From the above Rules it is apparent that licence by itself is not a immoveable property and therefore leasing of licence cannot be treated as renting of immoveable property service. In view of above, we find merit in the appeal and the same is therefore allowed. (Pronounced in cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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