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2019 (2) TMI 766 - AT - Service TaxClassification of services - Business Auxiliary Service or not - job of processing and recovery of iron and steel scrap supplied - period of dispute i.e. 01.03.2005 to 31.01.2008 - Held that:- An identical issue in respect of the appellant’s other unit which carried the activity at M/s SAIL (Bhilai Steel Plant) came before the Delhi Bench of the Tribunal in the case of M/S FERRO SCRAP NIGAM LIMITED VERSUS CCE, RAIPUR [2014 (1) TMI 1049 - CESTAT NEW DELHI]. The Tribunal held that there was no liability for payment of service tax upto 16.06.2005 on such activity. Liability for the period w.e.f.16.06.2005 - benefit of N/N. 8/2005-ST dated 01.03.2005 - Held that:- The activities carried out by the appellant for BSP is in the nature of processing. It is evident from the record that the appellant was required to recover of iron steel scrap from various stages of manufacture and the collected scrap was to be returned to BSP, but the benefit was denied to the appellant by taking the view that such scrap cannot be covered by expression of “raw materials” or “semi-finished goods”. But such a view is not called for. The scrap is nothing, but a raw material for use in melting and further manufacture within the iron and steel plant - Giving due consideration to such end-use Certificate submitted by the Public Sector Undertaking, the appellant will be entitled to the benefit of N/N. 8/2005 dated 01.03.2005. Appeal allowed - decided in favor of appellant.
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