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2013 (1) TMI 164 - AT - Service TaxBusiness Auxiliary Service - production or processing of goods for or on behalf of, the client - demand of service tax along with interest and penalties - assessee contested that the impugned processes amount to manufacture - Held that:- Examining the processes of denting and painting undertaken by assessee such processes are carried out before the bus body was cleared out of the factory. The process are essential for completion of manufacture of bus bodies and having no reason to hold that these processes cannot be considered to be manufacturing activities within the meaning of section 2 (f) of Central Excise Act, 1944. Further going by note 6 of section XVII of Central Excise Tariff, these processes per se also are defined to be process of manufacture because these processes are essential for transforming the semi-finished bus body into a complete and finished article. Thus the argument of Revenue fails. Whether shifting of goods within the factory premises amounts to "production or processing of goods for, or on behalf of, the client" - Held that:- Obviously the word "production" cannot cover shifting of goods. The word "processing" used in the company of "production" cannot be understood to cover any activity on the goods but only those activities which bring about some change in goods. These words cannot cover activities like shifting, transportation, storage etc within its scope. Shifting of waste arising in the process of manufacturing is one stage further removed from manufacturing activity. So no merit in the argument of Revenue. Exemption under notification 08/2005-ST denied - non producing evidence of duty payment - Held that:- The appellant was doing these jobs within the factory of JCBL who regularly submits excise returns to the excise department which administers service tax levy also. The whole case is made out based on scrutiny of the records of JCBL Ltd & there is no effort made by the department to identify exempted clearances of JCBL Ltd. Thus there is an approach of selectively looking at the records of JCBL Ltd. At least when pointed out by the appellant, there was an onus on the department to reexamine the records, thus the exemption under notification 08/2005-ST has been denied arbitrarily.
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