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2019 (6) TMI 326 - AT - Service TaxNature of activity - Manufacture or Business Auxiliary Services? - processes of chilling, pasteurization, homogenization and standardization etc. to convert raw milk into toned milk - HELD THAT:- On going through the definition of business auxiliary services, it is found that the same excludes a service which amount to manufacture of excisable goods. As such it can be safely concluded that if the processes or production for and on behalf of another person amounts to manufacture, the same would not get covered by the definition of business auxiliary services. Admittedly the processes undertaken by the appellant are for the purpose of rendering the raw milk as marketable product for the ultimate consumption of general public and as such, would get covered by the said Chapter note conferring a deeming status. The milk in question is known differently in the market and amongst the people, who use it. As such, the final product i.e. toned milk being separate and distinct from the raw milk has to be held as a manufactured item. If that be so, the definition of business auxiliary services would not be satisfied inasmuch as the same specifically excludes the processes which amount to manufacture - the appellant is not undertaking the chilling processes only, but there are further processes of pasteurization, homogenization and standardization etc., thus undertaking the manufacturing process beyond doubt. Appeal allowed - decided in favor of appellant.
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