Tripti Alcobrew Pvt Ltd Vs Commissioner of Central Excise & CGST (CESTAT Delhi)
CESTAT Delhi held that on transfer of right to use the brewery license, deemed sale had taken place, accordingly, the consideration received cannot be subjected to service tax. Thus, service tax is not leviable on such transfer.
Facts- A Lease Deed was executed between the appellant and Skol Breweries Limited for renting of land, building, plant and machinery by the appellant to Skol. The appellant discharged service tax liability under the head “renting of immovable property” services.
A License Agreement was also executed between the appellant and Skol whereby the appellant endorsed the brewery license in favour of Skol. This License Agreement was renewed from time to time and a License Agreement dated 01.03.2014 was executed between the appellant and Sab Miller India Limited (earlier known as Skol). The appellant treated the execution of the License Agreement to be a “deemed sale” under article 366(29A)(d) of the Constitution and paid VAT.
The department believed that the amount paid to the appellant under the License Agreements dated 30.01.2008 and 01.03.2014 should be included in the assessable value of “renting of immovable property service” because without the license endorsement the plant and machinery leased to the appellant could not have been put to use by Skol for brewing beer.
