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2021 (9) TMI 1544 - CESTAT HYDERABADNature of activity - sale or service - Process amounting to manufacture - activity of crushing, pulverizing, converting and packing of spices into powder - levy of service tax under the category of ‘business auxiliary service’ or not - HELD THAT:- This issue has been answered by the Larger Bench of the Tribunal in NILGIRI OIL & ALLIED INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS, HYDERABAD – IV [2021 (6) TMI 26 - CESTAT HYDERABAD] where it was held that 'Each of the whole spices or seeds is subject to processing for production of powder. The transformed product has its own market similar to, and yet independent of, the harvested product that is subjected to processing. It is the particular use to which powdered spice is put to that prompted the establishment of an entire industry. Furthermore, without such processing there would be an unsatiated demand for powdered spice which would have to be undertaken, with additional labour, in domestic kitchens. Every aspect of ‘manufacture’, as settled by judicial determination, is, thus, complied with.' The demand cannot sustain - appeal allowed.
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