Milk Chilling Not Business Auxiliary Service: CESTAT Delhi

Jai Durge Ice Factory Vs CCE & ST (CESTAT Delhi) Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has set aside an Order-in-Appeal that sought to levy service tax on Jai Durge Ice Factory for its milk chilling activities. The Tribunal ruled that chilling milk to preserve it for transportation does not fall under the purview of “Business Auxiliary Service” as defined in the Finance Act, 1994. Jai Durge Ice Factory, operating as a chilling plant contractor, receives milk from dairies, chills it to appropriate temperatures to prevent spoilage, and then re...