TMI Blog2014 (8) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act, 1994. In this regard the judgement of Hon'ble High Court of Madras in the case of United India Roller Flour Mills Ltd vs Union of India reported in [1980 (9) TMI 89 - HIGH COURT OF MADRAS] may please be referred, wherein the imposition of duty on "Maida" in the Finance Bill 1971 and exemption provided subsequently vide Not. No.162/71 dt 10.08.71 were discussed. Levy of duty on "Maida" confirms that conversion of wheat into "Maida" amounts to manufacture to attract levy under Section 3 of the Central Excise Act, 1944. On a perusal of the aforesaid communications, we find that the Chief Commissioner of Customs & Central Excise Coimbatore Zone as well as Director (CX.1), of Ministry of Finance, Department of Revenue had a view t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the levy of service tax on wheat product had drawn the attention of the CBEC by the Chief Commissioner of Customs Central Excise, Coimbatore Zone and the relevant portion of the said letter dated 06.03.2012 is reproduced below:- 2. In this regard, it is informed that two Show Cause Notices were issued to Roller Flour Mills viz., M/s. Naga Ltd., involving a sum of ₹ 3,03,91,110/-, and M/s. Jaya Krishna Flour Mills (P) Ltd., for an amount of ₹ 1,10,54,319/-, by Commissioner of Central Excise, Madurai demanding Service Tax under Business Auxiliary Service for their activity of Custom Milling of wheat into wheat products and both the demands were confirmed and equal penalty has been imposed. The copies of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. In this regard the judgement of Hon'ble High Court of Madras in the case of United India Roller Flour Mills Ltd vs Union of India reported in 1981 (8) E.L.T.66 (Mad.) may please be referred, wherein the imposition of duty on Maida in the Finance Bill 1971 and exemption provided subsequently vide Not. No.162/71 dt 10.08.71 were discussed. Levy of duty on Maida confirms that conversion of wheat into Maida amounts to manufacture to attract levy under Section 3 of the Central Excise Act, 1944. b) The decision in the case of M/s. Crane Betel Nut Power Works reported in 2007 (21) ELT 171 (SC) relied upon by the Commissioner, Madurai, pertains to the period when Supari was not specifically stated as manufacture in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013 observed as under:- 2) The issue was examined and an O.M. of even no., dated 14.01.2013 (copy enclosed) was sent to the Service Tax Wing of CBEC, as the issue pertains to service tax on the activity of milling of wheat into wheat products under erstwhile classification of Business Auxiliary Service. As Service Tax Wing would have needed inputs from the Central Excise Wing on the issue of manufacture', the same was provided to the effect that conversion of wheat into products like flour, maida, suji etc., amounts to manufacture'. 6. On a perusal of the aforesaid communications, we find that the Chief Commissioner of Customs Central Excise Coimbatore Zone as well as Director (CX.1), of Ministry of Finance, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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