2018 (5) TMI 679

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....r the category of 'Business Auxiliary Service'. They were awarded contract for felling, collection, conversion, debarking, stacking, extraction, transportation and delivery of trees like eucalyptus, acacia pulpwood from M/s. Mysore Paper Mills Ltd., captive plantation as per the tender Notification No. FTM/D(F)/RM/2005-06/483 dated 25.1.2006.These activities fall within the ambit of 'Business Auxiliary Services' as per Section 65(19) of the Finance Act, 1994. The appellant had received an amount of Rs. 46,69,647/- for providing the said services to M/s. Mysore Paper Mills Ltd., for the period from 10/2009 to 9/2010. The appellant obtained service tax registration under the said category only on 31.12.2010. The said amount was received on ex....

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....demand in the Order-in-Original has been confirmed only for the normal period from 1.10.2009 to 30.9.2010 by holding that the activities undertaken would not amount to manufacture under the Central Excise and hence, the service tax demand under the category of 'Business Auxiliary Service' has been confirmed along with interest and penalties. Learned counsel further submitted that in the present appeal, the appellant has challenged the said demand with interest and as confirmed in the Order-in-Original including the penalties but the appellant herein has already paid the service tax confirmed / upheld amounting to Rs. 2,16,838/- with interest in full and hence is restricting the challenge in the present appeal only praying for dropping the p....

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....al dated 15.3.2017 has been accepted by the Department and in fact has been followed even for dropping the penal proceedings in respect of similarly placed other assessees vide recent Order-in-Original dated 28.3.2018 passed by the Assistant Commissioner of Central Tax, Hassan and the copy of the said Order-in-Original dated 28.3.2018 has also been enclosed. 5. On the other hand, the learned AR reiterated the findings of the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that in the present proceedings the appellant has only challenged the various penalties imposed on him under various provisions of the Finance Act, 1994. Further, I find that the appellant has pai....