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2013 (5) TMI 451 - AT - Service TaxBenefit of Notification No.8/2005 denied - as per department appellant should have discharged service tax on the electroplating cost including the cost of electroplating materials used by the appellant - whether electroplating of electrical contacts by the appellant amounts to manufacture or not? - service tax demand confirmed - Held that:- As decided in Modison Metal Refiners vs. Commissioner [1996 (9) TMI 289 - CEGAT, NEW DELHI] the process undertaken by the appellant amounts to manufacture and therefore they are not liable to pay service tax in view of the specific exclusion in the definition of business auxiliary service which provides that if the process amounts to manufacture, no service tax would be liable to be paid. In this case, the 100% EOU viz., M/s. Tyco Electronics to whom the appellants have supplied the goods on job work basis is eligible for exemption Notification No.24/2003-CE dated 31.3.2003. Stand of the department that this notification exempts 100% EOU from payment of duty and therefore the appellant is not eligible for the benefit of Notification No.8/2005-ST is not acceptable as this is not an unconditional exemption notification. Exemption is available only if the goods are not brought to any other place in India. Since exemption under Notification No.24/2003 is not an unconditional exemption, the appellant has a case for eligibility for exemption under Notification No.8/2005 also even if it is assumed that the process does not amount to manufacture. In favour of assessee.
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