AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 265
X X X X Extracts X X X X
X X X X Extracts X X X X
....ough a pipeline, removing the impurities contained in the effluent water and send back the pure water recovered to the respective units. The Appellant is collecting necessary consideration for the same activity based on the output water delivered to the units. 1.3 The Department is of the view that the Appellant is providing Business Auxiliary Service for the period from 01.04.2009 upto 30.06.2012 and a taxable service from 01.07.2012 till 31.07.2014 as per the provisions of negative list regime as the activity is neither mentioned in the negative list nor exempted and so liable for service tax. 1.4 Consequently, the Show Cause Notice No. 91/2014 dated 10.10.2014 was issued to the Appellant demanding Service Tax of Rs.84,16,749/- on the consideration received of Rs.7,40,59,467/- invoking extended period for the period from 01.04.2009 to 31.07.2014 along with interest and proposing imposition of penalties under Section 76 and 78 of the Chapter V of the Finance Act, 1994. 1.5 After due process of adjudication, the proposals made in the Show Cause Notice have been confirmed by the Commissioner of Central Excise, Salem vide Order-in-Original No. 13/2015 (ST-Commr.) dated 16.07.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oner of Central Excise and Service Tax, Salem [2024 24 Centax 67 (Tri.-Mad.)] wherein it was held that the common effluent treatment plant which was formed collectively by textile processing units under a financial grant or subsidy from Central or State Government to be exempted under Notification No. 8/2017-ST dated 20.02.2017 issued under Section 11C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. 2.6 Relying on the decision rendered in the case of Butibori CETP Pvt. Ltd. Vs. Commissioner of Central Excise, Nagpur [2015-TIOL-700-CESTAT-MUM] he has contended that demand of service tax is not sustainable under Business Auxiliary Service for operating common effluent treatment plant. For the sake of ready reference, relevant portion is extracted below: - "6. On perusal of the records, we do not find that the demand confirmed against the appellant under the category of 'Business Support Services' for operating the effluent treatment plant which has been established under CETP Project, is sustainable in law." 2.7 The Ld. Authorized Representative Ms. O.M. Reena representing the Department has supported the findings in the impugned Order-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion for the claim of refund of service tax shall be made within six months from the date on which the Finance Bill, 2012 receives die assent of the President. Explanation. - For the removal of doubts, it is hereby declared that, - (i) project means common facility set-up for treatment and recycling of effluents and solid wastes, with financial assistance from the Central Government or a State Government; (ii) the provisions of section 11B of the Central Excise Act, 1944, shall be applicable in case of refunds under this section." The above Notification exempts retrospectively from 16.06.2005 onwards of the club or an association service provided in relation to any project which is a common facility set-up for treatment and recycling of effluents and solid wastes, with financial assistance from the Central and State Government. 6. From the facts it is abundantly clear that the Appellant is an entity created to construct and operate a Common Effluent Treatment Plant in accordance with the Guidelines of Ministry of Environment & Forests & Tamil Nadu Pollution Control Board, and that all the Directors of the tanneries functioning at SIPCOT, Perundurai are the members ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t was held that the treatment of effluent waste cannot be considered as processing of goods by any stretch of imagination and so not taxable under Business Auxiliary Service. The relevant portion of the order reads as under: - "3. On consideration of the submissions made by both sides we find that the issue in this appeal is regarding the demand of service tax from the appellant under the category of business auxiliary services for the period 2006-07. Both the lower authorities have held that the activity of the appellant in processing disposable waste water received from Apte Organic Pvt. Ltd. and releasing the same through common drainage into common effluent treatment plant will amount to services rendered to a client for processing of goods. 4. It is undisputed that the appellant is treating the industrial waste which is a waste for the said Apte Organics. Appellant gets industrial waste from Apte Organics and treats the same before releasing the treated water into effluent treatment plant. We find that reliance placed by the Counsel for appellant on the CBEC letter no. 137/111/2007-CX.4 dated 13 July 2007 is correct and applicable in this case. In the said Circular/le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....TP Pvt. LTD. is funded by the Central Government as well as by the State Government in support of which he has produced statements (status of CEPT in Maharashtra as on 23/02/2015) from the website of Maharashtra Pollution Control Board and draws our attention to the fact that Butibori CEPT Pvt. Ltd. is funded by Central Government as well as State Government through MPCB. He also submits that identical issue has been decided by this Bench in the case of Lote Parshuram Environment Protection Co-op Society Ltd. vs. Commissioner of Central Excise, Kolhapur, 2013 (30) STR 468 = 2012-TIOL-1741-CESTAT-MUM. 5. The learned DR reiterates the findings of the lower authorities. 6. On perusal of the records, we do not find that the demand confirmed against the appellant under the category of 'Business Support Services' for operating the effluent treatment plant which has been established under CETP Project, is sustainable in law. We find that the Maharashtra Pollution Control Board in their website has clearly stated that the appellant has been funded by the Central Government as well as the State Government through MPCB for setting up the Butibori CETP Plant. We also find str....