Appellate Tribunal upholds Rs. 2.31 crore Service Tax demand for Business Auxiliary Service. Co-operative sugar factories fall under this category.

The Appellate Tribunal CESTAT ALLAHABAD confirmed a Service Tax demand of Rs. 2.31 crore against the appellant under the 'Business Auxiliary Service' category. The services provided by Co-operative sugar factories to the appellant were deemed to fall within this category. Relying on a previous decision, the Tribunal set aside the impugned order and allowed the appeal to that extent.

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Issues:
Service Tax demand confirmation under 'Business Auxiliary Service' category.

Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD pertains to the confirmation of a Service Tax demand amounting to Rs. 2.31 crore against the appellant, coupled with a penalty imposition under the 'Business Auxiliary Service' category. The Tribunal found that the services provided to the appellant by Co-operative sugar factories fell within this specified category. Both parties acknowledged that a previous decision by the Tribunal in a related case, M/s U.P. Co Operative Sugar Factories Federation Ltd. V/s Commissioner of Central Excise & Service Tax, Lucknow, Final Order No.70705/2017 dated 12 April, 2017, covered the issue at hand. Consequently, the Tribunal, in line with the aforementioned order, set aside the impugned order and allowed the appeal to that extent. The judgment was pronounced in open court by the members of the Tribunal, Mrs. Archana Wadhwa and Mr. Anil G. Shakkwar.

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