CESTAT, CHENNAI BENCH

General Precured Treads (P.) Ltd.

v.

Commissioner of Central Excise, Trichy

P. karthikeyan, technical member

STAY ORDER NO. 1021/2007

S/PD/125/06

IN S/250/2006

OCTOBER 5, 2007

BUSINESS AUXILIARY SERVICE

Section 65 of the Finance Act, 1994 - Business auxiliary service - Assessee was engaged in manufacture of precured tread - It procured thermal fluid, heated it, and produced hot fluid - It supplied hot fluid to similar two units and collected charges for heat energy shared with its neighbouring units - Whether sharing of thermal fluid with units similar to assessee and charging them for heat energy could not be brought under definition of ‘procurement of goods or services’ which were input for clients - Held, yes - Whether in circumtances prima facie demand was not sustainable and pre-deposit requirement was to be waived - Held, yes [Para 3]

Terry V. James for the Appellant. Dr. Nitish Birdi for the Respondent.

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