CHHATTISGARH DISTILLERIES LTD. Vs. C.C.E., RAIPUR
LAWS(CE)-2015-3-22
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on March 05,2015

Chhattisgarh Distilleries Ltd. Appellant
VERSUS
C.C.E., Raipur Respondents


Referred Judgements :-

VIDHACHAL DISTILLERIES PVT. LTD. VS. STATE OF M.P [REFERRED TO]
KEDIA CASTLE DELLEON INDUSTRIES LTD. VS. CCE [REFERRED TO]
MAA SHARSA WINE TRADERS VS. UNION OF INDIA [REFERRED TO]


JUDGEMENT

R.K. Singh, Member (T) - (1.)THE Appeal has been filed against Order -in -Original No No.COMMISSIONER/RPR/11/2009, dated 03.02.2009 in terms of which a service tax demand of Rs. 4,39,26,388/ - was confirmed along with interest and penalties.
(2.)THE facts of the case, briefly stated, are as under: -
The appellants, manufacturers of country liquor, were also engaged in the activities of bottling, labelling, affixing the hologram stickers and sealing of glass bottles of country liquor. Investigations revealed that the State Excise Department was making payments to the appellants only for country liquor manufactured by them and charges for activities viz., bottling, labelling, affixing the hologram stickers and sealing by pilferage proof caps of the glass bottles of country liquor were collected by the appellants in the name of issue price at the prescribed rates approved by the State Excise Department. During the period 01.04.2007 to 31.03.2008, the appellants collected Rs. 35,53,91,489/ - towards the said activities. Revenue held that the services in the form of the said activities fall under the category of Packaging Services and accordingly confirmed the impugned demand along with interest and penalties.

The appellants have argued that (i) they were manufacturers of liquor and bottling, sealing, labelling, etc. were part of the overall process of manufacture upto the point of clearance and therefore they cannot be said to have provided Packaging Services. (ii) Their case is covered by the judgments in the cases of Maa Sharda Wine Traders vs. CCE, [2009 (15) (STR 3 (M.P.)] and Kedia Castle Delleon Industries Ltd. vs. CCE [ : 2011 (22) STR 15 (Tri. Del.)].

(3.)LD . Departmental Representative on the other hand states that as the charges for packaging activities were recovered separately, it cannot be said to be integral part of the manufacturing process and that the judgment of High Court of Madhya Pradesh in the case of Maa Sharada Wine Traders (supra) is not directly applicable because in the present case, the appellants were doing additional activities in addition to the activities covered in the case of Maa Sharada Wine Traders (supra).
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