2023 (9) TMI 808 - CESTAT KOLKATA

Classification of services - Business Auxiliary Services or not - service relating to machining work on the forged wheels received from M/s Durgapur Steel Plant (DSP) under job work and sent it back the same to the principal manufacturer - HELD THAT:- The said issue came up before this Tribunal in the case of M/S FERRO SCRAP NIGAM LIMITED VERSUS COMMR. OF CGST & EXCISE, BOLPUR (VICE-VERSA) [2021 (1) TMI 711 - CESTAT KOLKATA], wherein this Tribunal has observed For the period prior to 16.06.2005, the definition of BAS under Section 65(19)(v) of the Act, inter-alia, mean any service in relation to production of goods on behalf of the client. The Principal Bench in assessee’s own case, M/S FERRO SCRAP NIGAM LIMITED VERSUS CCE, RAIPUR [2014 (1) TMI 1049 - CESTAT NEW DELHI] as relied by the assessee, has already observed in identical set of facts that there is no third person in the instant case, whereas the tax can be levied under BAS only in case the service is provided on behalf of the client i.e. there would be involvement of three parties.

As the issue has been settled in favour of the appellant, therefore, the appellant is not liable to pay service tax on the activity of machineries and accordingly, the impugned order is set aside.

Appeal allowed.