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2023 (9) TMI 1441 - AT - Service TaxProcess amounting to manufacture or not - activity of blending, labeling, packing and re-packing of 'Horlicks' - section 2(f) (iii) of the Central Excise Act, 1944 read with chapter note 5 of chapter 19 of CETA, 1985 - HELD THAT:- The appellant undertakes the activity/processing on the bulk malt based powder, received from GSK thereafter removal of unwanted particles from the bulk malt based powder to make it fit for human consumption. Then processing/blending of the bulk powder with sweetened milk powder, sugar, vitamins etc. to make it marketable in the finished form and then packing of the final manufactured product either in pouches or in jars having brand name of 'Horlicks' on it. The said activity undertaken by the appellant do qualify as process of manufacturing in terms of section 2(f) of the Central Excise Act, 1944 as the activity undertaken by the appellant brings about a change in the name, character and use and bringing a new product in the market which is known as 'Horlicks', therefore, the activity undertaken by the appellant is manufacturing activity and the appellant is a manufacturer in terms of section 2(f) of the Central Excise Act, 1944. Thus, it cannot be said that the appellant is a job-worker and providing 'Business Support Service' and no demand of service tax can be raised against the appellant - the impugned order qua demand of service tax from the appellant that they are service provider post June 2012 and prior to 2012, the appellant was providing 'Business Support Service', is not sustainable - there are no merit in the impugned order - appeal allowed.
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