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2019 (6) TMI 738 - AT - Central ExciseManufacture - fabrication of structures, such as silos, pressure vessels, bridges etc., out of the principal raw material i.e. ‘mild steel plates’ occurring on site - HELD THAT:- The respondent had been discharging service tax liability on ‘job work’ and had been paying VAT on the material component is not in doubt. The original authority has placed reliance on the decision of the Tribunal in OSNAR CHEMICAL PVT. LTD. VERSUS COMMISSIONER OF C. EX., BANGALORE-II [2008 (9) TMI 344 - CESTAT, BANGALORE] to hold that discharge of tax liability under one law precludes the invoking of another law merely for garnering revenue that has thereby escaped one of the jurisdictions. By discharging the tax liability on the job work charges as well as by discharge of VAT liability on ‘brought out’ items used for fabrication at site, the scope for considering the activity as manufacture is eclipsed entirely. In this context of mutually exclusive levies under the scheme of taxation in the Constitution, the activity of the respondent is works contract and hence not leviable to duty under Central Excise Act, 1944. Appeal dismissed - decided against Revenue.
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