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2017 (12) TMI 1382 - AT - Service TaxClassification of services - Business Auxiliary Services or otherwise? - the services such as felling the trees, conversion, debarking, stacking of the logs, etc., provided by the contractors to M/s. MPM - manufacture - extended period of limitation - Held that: - In terms of Section 65 (19) (v), production or processing of goods for, or on behalf of the client is a service falling under the category of business auxiliary service. It is not a simple case of cutting of trees and then transporting the cut and debarked wood to the premises of their client. The appellants are required to convert the cut wood into billets of specific sizes, which sizes are fit for use in the pulp plant - as the issue of manufacture was never raised before the authorities below, we deem it fit to set aside the impugned orders and remand the matters to the original adjudicating authority for the purpose of deciding on the said plea of the assessees. Time limitation - Held that: - it is clear from above that the Revenue, though in the context of dispute involving the Mysore Paper Mills, was aware of the fact of placing work orders upon various contractors, for extraction collection, debarking stacking of the pulp wood. From this it becomes clear that there was no mala fide on the part of the contractors to suppress the fact of placement of work orders upon them - there is no mala fide motive on the part of the contractors not to pay the service tax - extended period not invocable. As the matters are being remanded to the original adjudicating authority for considering the aspect of manufacture, we direct him to examine each and every file separately and to limit the demands, if any, to the normal period - appeal allowed by way of remand.
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