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2018 (8) TMI 253 - AT - Service TaxBusiness Auxiliary Services - various services - Benefit of N/N. 08/2005 of 1st March, 2005 - whether the activities of the respective appellant are classifiable as business auxiliary service or as manufacture? - Whether the appellant is entitled for the benefit of exemption N/N. 6/05 dated 1st March, 2005? Held that:- In the present case, no doubt the raw-material in question has undergone the simple process of cutting of angles, punching of angles, notching, bending, drilling etc. but the fact remains is that those activities are being carried out with the sole objective of those raw-material to be customised into a particular shape and size, even in terms of the location of hole/punch there upon, to suite the design, specification of the final product that is the transmission tower in hand. The processes undertaken by the appellants on the raw-material provided to them by L & T in L & T’s own premises are nothing but the processes to convert the said raw-material into a customized part of the whole transmission tower and as such, the activity of the appellants is incidental/ ancillary to the completion of the manufactured product and thus, falls under Section 2 f (i) of Central Excise Act, 1944 - It is clear that it includes the activity which is production or processing of the goods for or on behalf of the client but does not include any activity that amounts to manufacture of excisable goods. Benefit of exemption N/N. 6/05 dated 1st March, 2005 - Held that:- It is an admitted fact that M/s. L & T had been performing further manufacturing activities on the semi finished goods processed by the appellants and have been clearing those goods on payment of duty as well as under the exemption Notification without payment of duty. The appellants have failed to provide the gross aggregate value received by them from M/s. L & T even before the first Appellate Authority. Resultantly, the authority has rightly denied the benefit of exemption N/N. 06/05 to the appellants - With respect to granting the benefit of exemption N/N. 08/2005-ST dated 1st March, 2005 also, there is no infirmity in the impugned order. The impugned activity is manufacture - Benefit of N/N. 08/2005 of 1st March, 2005, is confirmed, however, denying the benefit of N/N. 06/2005 dated 01.03.2005 - appeal allowed in part.
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