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2018 (8) TMI 1287 - CESTAT HYDERABADNature of activity - manufacture or service - activity of strapping wire rod mill products of Visakhapatnam Steel Plant (VSP) - process amounting to manufacture or Business Auxiliary Services - It is alleged that the appellant had not obtained registration for the business auxiliary services and thereby contravened Rule 4 of Service Tax Rules, 1994 r/w section 64 of the Chapter V of Finance Act, 1994. Held that:- Merely strapping the wire rod mill products does not bring into existence a new distinct commodity. It is more in the nature of packing the products manufactured by their client - there is no force in the arguments of the appellant that they are excluded from the definition of business auxiliary services by virtue of the proviso to the definition. The activity of the appellant of strapping the wire rod mill products of their client in the factory of the client with the material supplied by the client, so that the client can, in turn, clear the goods on payment of excise duty, is squarely covered by Notification No.8/2005-ST and therefore they are not liable to pay service tax under the head of business auxiliary services - As no service tax is leviable, the question of interest and penalties also does not arise. Appeal allowed - decided in favor of appellant.
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