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2021 (9) TMI 1269 - AT - Service TaxCENVAT Credit - input services - Job Charges - fixed and variable charges - Supply of Tangible Good Service - suppression of facts or not - invocation of extended period of limitation - HELD THAT:- The appellant have actually entered into an agreement for manufacture on job work basis. Evidently, as per the agreement the job charges have been spread over in two tier billing i.e. fixed charges and variable charges. The reason being that in summer season there is more demand of packed water and beverages, whereas in other months, the demand is lower. Keeping in view the constant availability of funds to meet the fixed charges and finance charges and for variable cost towards job charges, two tier billing has been provided, to the appellant job worker to meet the financial obligation round the year. Admittedly, appellant has paid the excise duty on the goods manufactured and cleared for the principal manufacturer, as is evident from the copy of excise returns filed before the Tribunal. The job charges received by the appellant have formed part of the cost of manufacture, which have suffered excise duty. Accordingly, service tax cannot be levied on the fixed components of job charges. There is no nature of pure civil construction service in the facts and circumstances and the facts stated by the appellant and as taken by audit team are undisputed - erection of storage tank and/or pipeline for carrying the concentrate or beverage for processing from one machinery or the other are essential part of the manufacturing process and accordingly the input credit is rightly taken by the appellant. Appeal allowed - decided in favor of appellant.
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