No Service Tax on Tobacco Processing as Activity Not Covered Under BAS: CESTAT Hyderabad

Green Leaf Tobacco Threshers Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Hyderabad) The appeal was filed against an Order-in-Original dated 11.01.2013, whereby service tax demand along with penalties was confirmed against the appellant. The dispute related to two issues: whether threshing and redrying of tobacco leaves undertaken on job work basis falls under “Business Auxiliary Service” (BAS), and whether service tax was payable under “Goods Transport Agency Service” (GTAS) for the period 01.10.2009 to 31.12.2011. The department observed that the appellant processe...