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2019 (4) TMI 899 - AT - Service TaxJob work - intermediate production process - Mega Exemption Notification - Sl. No. 30(c) of N/N. 25/2012 - It appeared to the Department that the job work activity carried out by the appellant is liable to be treated as an exempted service - Held that:- Any activity which amounts to manufacture of excisable goods is not subject to levy of service tax under the category of ‘Business Auxiliary Service’. After 01.07.2012, the Negative List of services under Section 66D of the Finance Act, 1994 specifically stated that any process that is carried out for manufacturing of goods is not subject to levy of service tax. A careful reading of paragraph 30 of Notification No. 25/2012 in this background would show that ‘carrying out’ an intermediate production process as job work in relation to any goods on which appropriate duty is payable by the principal manufacturer, is not taxable. When the process carried out by the appellant amounts to manufacture, the very same activity cannot be considered as a service. Merely because the said activity is carried out on an intermediate product, Sl. No. 30(c) cannot be applied. Sl. No. 30 states “an intermediate production process as job work”, but does not say that ‘such process will include manufacturing process’. When the activity of manufacture is subject to Central Excise Duty, the very same activity cannot be subjected to levy of Service Tax. The entire Show Cause Notice is based on a wrong perspective or interpretation of law. The appellant is not engaged in providing any exempted service. Appeal allowed - decided in favor of appellant.
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