TMI Blog2022 (4) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... the Statutory levy; therefore not against provision of any service. Since there is no service is existing against fee paid by the appellant to the State Government, service tax cannot be charged on the said fees. This issue is no longer res integra as the same has been considered by this Tribunal in the case M/S. ANHEUSER BUSCH INBEV INDIA LTD. (FORMERLY KNOWN AS SAB MILLER INDIA LTD.) VERSUS COMMISSIONER OF CENTRAL TAX, BENGALURU NORTH WEST [ 2021 (2) TMI 1023 - CESTAT BANGALORE] where it was held that the appellant is not liable to pay service tax on Export Pass fee, Import Pass fee, Permit fee, Excise Staff Salary and overtime allowances/charges. It can be seen that the various fees paid by the assessee in the aforesaid case wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment for parting with its exclusive privilege to import, export and transport liquor, which is in terms of Entry 8 of List-II of Seventh Schedule of the Constitution of India; according to which, production manufacture, possession, transport, purchase and sale of intoxicating liquors is the exclusive privilege of the State. He submits that there is no quid pro quo in the licence fee and service, if any, rendered by the State Government; the licence fee charged by the State Government is neither any tax nor any fee, but it is the consideration charged by the State Government for parting with its privilege and granting it to licensee for manufacture and sale liquor. He submits that the licence fee charged by the State Government is not sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCC OnLine Raj 937] iv. State of Orissa and others Vs. Narain Prasad and Ors. [(1996) 5 SCC 740] v. Gupta Modern Breweries Vs. State of J K and Ors. [(2007) 6 SCC 317] 3. Shri P. Rama Holla, learned Superintendent(AR) Appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both sides and perused the records. We find that the adjudicating authority has confirmed the demand in respect of various fees paid to the State Government in respect of manufacture, import and sale of alcoholic liquor. The adjudicating authority, though dropped the demand on licence fee, but confirmed the demand on all other fees. In our considered view, there is no difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Goods and Services Tax Act, 2017 with effect from the 1st day of July, 2017 (hereinafter referred to as the said Chapter), no service tax shall be levied or collected in respect of taxable service provided or agreed to be provided by the State Government by way of grant of liquor licence, against consideration in the form of licence fee or application fee, by whatever name called, during the period commencing from the 1st day of April, 2016 and ending with the 30th day of June, 2017 (both days inclusive). 6.1 Further, we note that Learned Commissioner has wrongly considered the fee paid by the appellant to the State Excise department and various other Government departments/agencies as having an element of a quid pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of service tax on fee paid to State Government in relation to alcoholic liquor for human consumption has come to an end and it is clear that service tax is not leviable on the said fees from April, 2016 to June, 2017. Specific inclusion of words by whatever name called , the Legislature made it abundantly clear that any fee paid under the purview of State Excise legislation would not be leviable to service tax. Further, it is pertinent to note that the words License Fee are defined by Oxford Dictionary to mean a fee paid to an organization for permission to own, use or do something . The Hon ble Apex Court in the case of State of Orissa v. Narain Prasad cited supra specifically explained the meaning of expression Privilege and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand of service tax on Storage License fee for CO2 along with interest. 7. Further, we may also note that the issue with respect to tax liability on license fee and other application fee paid to the State authorities continued to be an issue under GST as well and the GST Council in its 26th meeting on 10-3-2018 recommended that GST was not leviable on license fee and application fee, by whatever name called , payable for alcoholic liquor for human consumption and that this would apply mutatis mutandis to the demand raised by the Service Tax/Excise authorities on license fee for alcoholic liquor for human consumption in the pre-GST era i.e. for the period from April, 2016 to 30th June, 2017. 8. In view of our discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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