TMI Blog2017 (10) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The 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 - appeal allowed - decided in favor of appellant. - ST/169/12 & ST/89625, 89626/13 - A/89941-89943/17/STB - Dated:- 28-9-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) None for Appellant Shri S. R. Nair, Examiner Officer (A.R) for respondent ORDER Per : Raju These appeals have been filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said demand was also dropped by Commissioner vide impugned order. 2.1. The Ld. Counsel pointed out that the appellant had recovered lease charges at the rate of ₹ 5,00,000/- per month from M/s. Diageo India Pvt. Ltd. The show cause notice demanded Service Tax on the total amount of ₹ 1,70,00,000/- collected by them on lease charges under the head of renting of immovable property service. The said demand was confirmed by the Commissioner and penalty under Section 76 and 78 was imposed. The penalty under Section 76 was however restricted to amount collected prior to 10.05.2008. Ld. Counsel argued that what they had rented was not immovable property but the License issued by the State Government for production. Ld. Counsel ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e credit has been availed on photocopy of invoices and not on original invoices. Ld. Counsel argued that they had given detailed definitions. In this regards including pointing out that Sr. No. 2 and Sr. No. 30 of the list relates to the same invoice. He further pointed out that they had produced certain invoices in the definitions Commissioner and that fact has been recorded in the impugned order. However Commissioner has not given any finding in respect of the detailed reply given by the appellants and denied the credit. 2.4. Ld. Counsel further raised the issue of limitation. 2.5. Ld. Counsel further pointed out that in respect of appeal No.ST/89625, 89626/13 demand of ₹ 3,09,000/- has been confirmed on the amount of lease an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licensor without the permission. The said Rules provided for strict conditions of License under Rule 17 thereof. Rule 17 contains as many as 46 Sub-rules requiring the manner in which the license premises and the processes therein are to be operated. Sub-rule (3)(4) of Rule 17 prescribed for unhindered access to the licensing authority. 4.1. A perusal of agreement between the appellant and the M/s. Diageo India Pvt. Ltd. dated 25.09.2006. The following clauses ( C) (D)- (C) KAM is engaged in the business of manufacture and bottling of alcoholic beverages and has represented to DIAGEO INDIA that it has a fully operational Plant having all Consents and facilities to undertake the process of job contracting the Products, at the Plant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms of Rule 4-C and 16-3 similarly in terms of Rule 4-D 16-4 the said Rule permits transfer of licence from one side to another Rule 15 of the said Rules reads as under: Grant of licence-(1) Any persons desiring to manufacture potable liquor shall make an application in Form P.L.A. accompanied by a challan evidencing payment of an application fee of five hundred rupees for a licence in that behalf to the State Government through the Commissioner. The application shall be accompanied by a plan in quadruplicate containing a full description of the premises and material utensils, implements or apparatus required for manufacturing such liquor. The applicant shall also submit with the application four signed copies of a statement explaining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uadruplicate of the proposed distillery ; (iv) a statement, in quadruplicate, specifying the number, size, description and capacity of vessels for storing wash or spirit including receivers, and other apparatus as are proposed to be used in working the distillery ; (v) a statment, in quadraptticate, specifying the make and capacity of the still proposed to be erected and used, in working the distillery. (2) The application shall be accompanied by an undertaking to the effect that the applicant shall abide by the provisions of the Act and the rules, regulations and orders made thereunder and the conditions of the licence. (3) On receipt of an application and after making such inquiries for verification of the details stated in the applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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