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2020 (2) TMI 515 - AT - Service TaxNature of activity - manufacture or service - processing and packing of marine products for merchant exporters - whether the activity of the appellant can be termed as taxable service under the provisions of Finance Act, 1994 as Business Auxiliary Service or the activity can be called as a manufacture as defined under the provisions of Central Excise Act, 1944? - HELD THAT:- It is not in dispute that the processes undertaken by the appellant on the marine products are intended to render such products marketable to consumers. Therefore the appellant’s activity falls under the definition of manufacture and not as taxable service falling under BAS. Both the authorities have not properly appreciated the processes explained by the appellant vis-à-vis the Chapter Note 3 of Chapter 16 CETA, 1985. The definition of BAS is also examined and it is found that the activities carried out by the appellant do not fall under the BAS as defined under Section 65(19) of the Finance Act - Further as far as demand of service tax on renting of immovable property is concerned, we find that if the other activity carried on by the appellant amounts to manufacture, the demand of service tax on renting of immovable property amounting to ₹ 3,59,574/- will fall in the threshold limit and is exempt and the appellant is not liable to pay service tax on that. Appeal allowed - decided in favor of appellant.
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