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2014 (6) TMI 492 - AT - Service TaxDemand of service tax - Business Auxiliary Services - Job work of converting rounds into handles which are a part of scaffolding - Held that:- appellant had intimated the department about availment of exemption under notification no.214/86-CE and also the principal manufacturer had given an undertaking under this exemption notification to use the job work goods in the manufacture of finished products which would be cleared on payment of duty. It is clear that the department itself has accepted the appellant’s activities as manufacture. Moreover subjecting the rounds to the process of cutting, bending, threading, heat treatment, shot blasting, as a result of which, a part of scaffolding item ‘Handle’ emerges, would amount to manufacture. Therefore, the activity of the appellant cannot be treated as Business Auxiliary Services (production of goods not amounting to manufacture). Moreover, even if, it is treated as service, when it is not denied that the job-work goods were returned by the appellant to the principal manufacturer, the exemption under Notification No.8/2005-ST dated 1.3.2005 cannot be denied on the ground that there is no evidence that the goods produced were used by the principal manufacturer in or in relation to the manufacture of final products. In view of this, the impugned order is not sustainable. The same is set aside - Decided in favour of assessee.
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