TMI Blog2023 (10) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax under BAS was allowed in relation to four industries namely agriculture, printing, textile processing and education. Therefore, the appellant being textile industry, it is covered under the category textile processing in the notification. The ratio laid down in the above case has been followed by this Bench in the case of M/s. Madras Security Printers Pvt. Ltd. v. Commissioner of Service Tax, Chennai [ 2023 (4) TMI 1195 - CESTAT CHENNAI ]. The impugned order set aside - appeal allowed. - MR. P. DINESHA, MEMBER (JUDICIAL) AND MR. M. AJIT KUMAR, MEMBER (TECHNICAL) Smt. R. Charulatha, Advocate for the Appellant Shri M. Ambe, Deputy Commissioner for the Respondent ORDER This appeal has been filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Tata Blue Scope Steel Ltd. v. Commissioner of C.Ex., Pune-I [2018 (14) G.S.T.L. 370 (Tri. Mumbai)] to argue that since the appellant was under a bona fide belief that tax was not payable and also since the situation is revenue neutral, the invocation of extended period of limitation was not proper. 4. Per contra, the Ld. Deputy Commissioner defended the impugned order. He relied on an order of the Delhi Bench of the Tribunal in the case of M/s. Shree Ranie Gums Chemicals Pvt. Ltd. v. Commissioner of C.Ex., Jaipur-II [2017 (4) G.S.T.L. 340 (Tri. Del.)] in his support. 5. We have heard the rival contentions and we have also gone through the orders of various Benches of the CESTAT relied upon during the course of arguments. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod involved in all these appeals relates to post 18-4-2006. It is relevant to reproduce the Notification No. 14/2004-S.T., dated 10-9-2004 as under :- Service tax exemption to specified services in relation to Business auxiliary service In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided to a client by any person in relation to the business auxiliary service, insofar as it relates to, - (a) procurement of goods or services, which are inputs for the client; (b) production or processing of goods for, on behalf, of the client; (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incidental or auxiliary to processing of textile goods and covered by Business Auxiliary Service and Clause (d) of the notification extracted above covers the case of the appellant bringing the export promotion activity abroad as incidental and auxiliary to the activity of production as is meant by Section 65(19) of Finance Act, 1994. Appellants are accordingly entitled to the benefit of exemption Notification No. 14/2004 and not liable to the payment of service tax under reverse charge. 7. It is also relevant to state that appellants being the exporter of textile made ups as per the Foreign Trade Policy are not expected to export the taxes. Appellants pleaded that there was no suppression of facts with deliberate intention to evade p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce it is stated by appellants that they have no other liability for which the exercise may become revenue-neutral. 9. Therefore, in view of the above discussions, the demand of service tax under reverse charge confirmed against the appellants is set aside. As regards Revenue s appeal on imposition of penalty, since demand of tax itself is set aside, the question of imposing penalty does not arise. Revenue s appeal is rejected accordingly and the Assessees appeals are allowed. 6.2 The ratio laid down in the above case has been followed by this Bench in the case of M/s. Madras Security Printers Pvt. Ltd. v. Commissioner of Service Tax, Chennai [Final Order No. 40305 of 2023 dated 26.04.2023 in Service Tax Appeal No. 41714 of 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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