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2014 (6) TMI 493 - AT - Service TaxDemand of service tax - Business Auxiliary Service - chilling of milk to temperature below 50Celcius for M/s. SZDUSS Ltd - Held that:- mere chilling of milk to temperature below 50Celcius for the purpose of its long distance transportation, does not amount to production or processing of goods, as there is no permanent or temporary change in milk other than lowering of the temperature by the process of chilling of milk, due to which it can be transported over long distance without getting spoiled. The Apex court in the case of Commissioner Income Tax Vs. N.C. Budharaja & Co., reported in [1993 (9) TMI 6 - SUPREME Court] has held that word production, when used in juxtaposition with word ‘manufacture’, takes in bringing into existence new goods by a process, which may not amount to manufacture. Therefore ‘Production’, there must be some change in the raw-material subjected to process, though by that change no new product with distinct characteristic, commercial identity and usages has emerged. The process of chilling of milk to make it fit for long distance transportation without getting spoiled, which does not bring into existence any change whatsoever, would not amount to production or processing of the goods not amounting to the manufacture. We also find that earlier, the Commissioner (Appeals) on this very issue had taken view that chilling of milk is not Business Auxiliary Service covered by section 65(19)(v) of the Finance Act, 1994. In view of this we hold that impugned order is not sustainable - Decided in favour of assessee.
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