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2021 (12) TMI 181 - HC - Central ExciseNature of activity - service or process amounting to manufacture - production of electricity - Scope of Business Auxiliary Service - HELD THAT:- The Business Auxiliary Service excludes activity that amounts to manufacture. In ORIENT PAPER & INDUSTRIES LTD. VERSUS ORISSA STATE ELECTRICITY BOARD [1989 (1) TMI 138 - HIGH COURT OF ORISSA], it was held that electricity that has been specified in the First Schedule to the CE Act after its amendment was ‘excisable goods’ and, therefore, generation of electricity should be understood as ‘manufacture or production of electricity.’ In CMS (I) OPERATIONS & MAINTENANCE CO. P. LTD. VERSUS C. CE, PONDICHERRY [2007 (5) TMI 74 - CESTAT, CHENNAI], the Southern zonal Bench of the CESTAT held that electricity was manufactured goods in terms of Section 2(f) of the CE Act and, therefore, the activity of electricity generation was not liable to service tax as ‘Business Auxiliary Service’ under Sections 65 (19) read with 73 of the Finance Act. The Court finds no reason to interfere with the impugned order of the CESTAT in the present case - Appeal dismissed - decided against appellant.
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