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of <h1>Appellate tribunal grants relief on penalty for Service Tax in alcohol manufacturing case</h1> The appellate tribunal partially allowed the applications for stay, granting relief regarding the penalty amount imposed on the appellant for Service Tax. ... - Issues:1. Demand of Service Tax and penalty imposed on the appellant.2. Interpretation of Circular issued by the Board on 27th October, 2008 regarding 'Business Auxiliary Service'.3. Exclusion of activity from 'Business Auxiliary Service' in the context of manufacturing alcoholic beverages.4. Grant of waiver for penalty amount.5. Analysis of orders passed by different Commissioners in relation to the appellant's activity.Analysis:1. The appellate tribunal addressed the issue of the demand for Service Tax and penalty imposed on the appellant. The authorities below had demanded significant amounts of Service Tax along with penalties, holding the appellant liable to pay interest on the said amounts.2. The tribunal analyzed the interpretation of the Circular issued by the Board on 27th October, 2008, concerning the definition of 'Business Auxiliary Service' under Section 65(19) of the Finance Act, 1994. The appellant's consultant argued that the activity in which the appellant was engaged did not fall under 'Business Auxiliary Service' as clarified by the Board's Circular.3. The tribunal examined the exclusion of the appellant's activity from 'Business Auxiliary Service' in the context of manufacturing alcoholic beverages. It was noted that the Circular specified conditions under which activities would not be considered taxable services, particularly in cases where the activity amounts to manufacturing.4. Regarding the grant of waiver for the penalty amount, the tribunal found a prima facie case for granting waiver as the authorities had taken a different view subsequent to the Circular in the case of the appellant's activity.5. The tribunal scrutinized the orders passed by different Commissioners concerning the appellant's activity. While one Commissioner described the appellant's activity as job work, another Commissioner did not provide a detailed analysis of how the Circular applied to the appellant's case, leading to a lack of sustainability in the demand.In conclusion, the tribunal partially allowed the applications for stay, granting relief regarding the penalty amount. The order demanded the deposition of the Service Tax and interest within a specified period, with a reporting compliance date set for the future. The applications were disposed of accordingly.
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