CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL HYDERABAD REGIONAL BENCH - COURT NO. – I Service Tax Appeal No. 251 of 2012 (Arising out of Order-in-Original (Denovo) No.14/2011 – S.Tax dated 31.10.2011 passed by Commissioner of Customs, Central Excise & Service Tax, Guntur)

The Regional Manager, .. APPELLANT Tobacco Board H.No.CA-5673-C, 14^th Main, Near Yoganarasimha Swamy Temple, Vijayanagar, Mysore – 570 003.

VERSUS Commissioner of Central Excise .. RESPONDENT And Service Tax Guntur P.B.No.331, C.R. Building, Kannavari Thota, Guntur, Andhra Pradesh – 522 004.

WITH Service Tax Appeal No. 624 of 2012 (Arising out of Order-in-Original (Denovo) No.14/2011 – S.Tax dated 31.10.2011 passed by Commissioner of Customs, Central Excise & Service Tax, Guntur)

Commissioner of Central Excise .. APPELLANT And Service Tax Guntur P.B.No.331, C.R. Building, Kannavari Thota, Guntur, Andhra Pradesh – 522 004.

VERSUS Tobacco Board .. RESPONDENT H.No.CA-5673-C, 14^th Main, Near Yoganarasimha Swamy Temple, Vijayanagar, Mysore – 570 003.

AND Service Tax Appeal No. 2145 of 2012 (Arising out of Order-in-Original No.48/2012-S.Tax (Commnr.) dated 30.03.2012 passed by Commissioner of Customs, Central Excise & Service Tax, Guntur)

Tobacco Board .. APPELLANT H.No.CA-5673-C, 14^th Main, Near Yoganarasimha Swamy Temple, Vijayanagar, Mysore – 570 003.

VERSUS Commissioner of Central Excise .. RESPONDENT And Service Tax Guntur P.B.No.331, C.R. Building, Kannavari Thota, Guntur, Andhra Pradesh – 522 004.

APPEARANCE:

Shri B. Venugopal, Advocate for the Assessee.

Shri A. Rangadham, Authorized Representative for the Department.

CORAM: HON’BLE Mr. A.K. JYOTISHI, MEMBER (TECHNICAL)

HON’BLE Mr. ANGAD PRASAD, MEMBER (JUDICIAL)

FINAL ORDER No. A/30161-30163/2026 Date of Hearing: 26.11.2025 Date of Decision: 13.03.2026 [ORDER PER: ANGAD PRASAD]

Appeal No. ST/251 & 642/2012:

M/s Tobacco Board, Vijayanagar, Mysore (hereinafter called as appellant) has filed this appeal against Order-in-Original dated 24.03.2009/ 26.03.2009 (Denovo No. 14/2001) dated 31.10.2011 passed by the Commissioner (Appeals), Guntur where the demand re-quantified amounting to Rs. 2,62,22,286/- under the provision of Section 73(1) of the Finance Act 1994 along with interest under Section 75 of the Act and against penalty imposed under Section 76 and 77 of the Act. Whereas, Department filed an appeal against the same Order-in-Original for non-imposition of penalty under Section 78 of the Finance Act 1994.

2. The facts in brief are that the appellants are engaged in the auctioning of tobacco leaves through their 10 auction platforms situated in Mysore & Hassan Districts of Karnataka for which the appellants are collecting service charges from the growers as well as buyers of the tobacco. During the period 01.05.2006 to 31.03.2008 in terms of Section 65(105)(zzzr) of the Finance Act under the category of ‘auction of property’ service as defined under Section 65(7a) the demand was made.

3. A Show Cause Notice dated 19.12.2008 was issued against the appellant and they had filed a reply and contested. After due process of law, Learned Commissioner of Service Tax, Mysore vide Order-in-Original dated 24.03.2009/26.03.2009 rejected the contentions of the appellant and confirmed the proposal issued by the Department except to impose penalty under Section 76 of the Act.

4. The Appellant filed an appeal (Appeal No. ST/369 of 2009) against the Order-in-Original before the CESTAT, Bangalore on various grounds, which was disposed of vide Final Order No. 874/2010 set aside the impugned order and remanded the case for fresh adjudication.

5. The denovo proceedings were taken up by the Commissioner of Customs, Central Excise & Service Tax, Guntur, as by that time, the Appellant has obtained Centralised Registration. After considering the various submissions Learned Commissioner passed Order-in-Original (Denovo dated 31.10.2011) and confirmed the levy of Service tax at a re-quantified amount of Rs. 2,62,22,286/- under provisions of Secti