Commissioner of Central Excise Aurangabad Vs Millennium Beer Industries Ltd. (Bombay High Court)
Summary: The Bombay High Court, Aurangabad Bench dismissed the Revenue’s Central Excise Appeal No. 1 of 2020 filed against the CESTAT order dated 11.07.2019 which had allowed the appeal of M/s Millennium Beer Industries Ltd. The dispute arose from service tax demand for the period 23.09.2009 to 15.11.2011 concerning manufacture and sale of alcoholic beverages by the respondent under an agreement dated 01.04.2005 with M/s United Breweries Ltd. A show-cause-cum-demand notice dated 19.12.2012 demanded Rs. 21,92,03,724/- with interest and penalties. The adjudicating authority confirmed the demand, whereas CESTAT held the demand barred by limitation.
The Revenue contended that the service tax liability could not be extinguished by the amalgamation deemed effective from 01.04.2010 and that the effective date should instead be 16.11.2011, when the certificate of incorporation was issued by the Registrar of Companies. It therefore argued that the extended limitation period was available. The respondent disputed this position and relied, among other matters, on the Revenue’s acceptance of an identical CESTAT decision in the case of M/s SAB Miller Breweries Pvt. Ltd. The respondent also submitted that the transaction had been disclosed to the Revenue and that service tax on consideration of Rs. 5/- per case relating to Intellectual Property Service had already been paid.
Want to Read the Complete Judgment?
You have read the free case summary. Unlock the full judgment, the detailed judicial reasoning and the downloadable PDF, along with every other premium judgment on TaxGuru.
Already subscribed? Log in
One subscription covers the entire premium judgment library, not just this case.
