Case Law Details
Venkateshwara Hatcheries Private Limited Vs Commissioner of Central Excise (Bombay High Court)
Bombay High Court held that services in the nature of ‘Veterinary Services’ and ‘Technical and Laboratory Testing Services’ did not fall under taxable category of Business Auxiliary Services.
Facts- Appellant is engaged in business of production and marketing of chicks and other related activities on behalf of its clients/group companies. Appellant has been providing services as a Commission Agent to M/s. Venco Research & Breeding Farm Pvt. Ltd and M/s. Venkateshwar Research & Breeding Farms Pvt. Ltd. in the nature of promotion and marketing service, veterinary service, laboratory analysis and testing service. Commission for the aforesaid services is charged as per the total sales made by Venco and VRB.
The Excise Department directed Appellant to pay service tax on commission received for testing and veterinary services, under the taxing entry of ‘Business auxiliary services” rendered since 1 July, 2003, on the basis that the said activities/services are covered by customer care services provided on behalf of the client.
Conclusion- In the present proceedings the issue is whether Veterinary Services and Pathological laboratory Testing of chicks, will fall into ‘Business Auxiliary Services’, therefore, Sub-section (106) of Section 65, cannot be read so as to exclude ‘chicks’. We are thus of the opinion that sub-section (106) of Section 65, would include poultry (chicks) also. Therefore, chicks being animals are specifically carved out of the ambit of Service tax in relation to technical testing and laboratory and analysis services.
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