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2018 (5) TMI 1469 - AT - Service TaxBAS - Job-work - process of lamination of solar cells - It appeared to the department that the processes undertaken by the respondents do not amount to 'manufacture', in terms of Section 2 (f) of the Central Excise Act, 1944 and the activity is squarely covered under 'Business Auxiliary Service' - benefit of N/N. 8/2005 dt. 1.3.2005. Held that: - it cannot be disputed that respondents receive Photovoltaic Cells from their principal on which they carry out job work, resulting in Photovoltaic Solar Laminate. The product Solar Laminate that emerges after all of these activities is sent to the principal for further processing and completion of Solar Photovoltaic Module - The lower appellate authority has noted that the SCN is limited to the activity of ‘lamination‟, however it is silent on how the lamination does not amount to 'manufacture'. The lower appellate authority arrived at a conclusion that activity “lamination’ for which the job order was given to the respondent by the 100% EOU is in fact, a series of activities to manufacture “Solar PV Laminate’ and that the process amounts to ‘manufacture‟ within the meaning of Section 2(f) of the Central Excise Act, 1944, hence the job work activity will not attract levy of service tax under “Business Auxiliary Service’ as defined in Section 65 (19) of the Finance Act, 1994. We are not able to find any infirmity in these findings of the lower appellate authority. The job work activity carried out by the respondents will only have to be considered as amounting to ‘manufacture’, hence same cannot be again considered as ‘Business Auxiliary Service‟ and service tax cannot be demanded on the activity under BAS - appeal dismissed - decided against Revenue.
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