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2024 (5) TMI 9 - CESTAT AHMEDABADNature of activity - manufacture or service - Activity amounting to manufacture or not - crushing of lumps - time limitation - HELD THAT:- As per the Section 2(f) from the sub-clause (ii) of Section 2(f), it is clear that in relation to any goods in the section or Chapter notes if the activity is specified as amounting to manufacture is resultant goods will qualify as manufactured goods. In the present case also as per Chapter Note i2) under Chapter 25, the crushed ground powdered form of the product covered under chapter heading 2501, 2503 and 2505 is a manufacturing activity. Therefore, the appellant’s activity is clearly a manufacturing activity. Support derived for the case of SN. SUNDERSON (MINERALS) LTD. VERSUS SUPTD. (PREVENTIVE), C. EX., INDORE [1994 (3) TMI 111 - HIGH COURT OF MADHYA PRADESH] where it was held that the operation of crushing brings into existence a new product which has a different name, character and use. Process in this case is `manufacture' of lime stone chips which are excisable goods liable for duty under Chapter 25 of the Central Excise Tariff Act, 1985 at the rate of 12 per cent. The Collector, Central Excise, is right in levying duty on lime stone chips. From the above, it can be seen that any activity that amounts to manufacture of excisable goods is excluded from the definition. As discussed above, we arrive at a conclusion that the crushing of lumps into powder is an activity amounts to manufacture, when this being so, the manufacturing activity is excluded from the definition of Business Auxiliary Service, therefore, no service tax under the said head shall sustain. Time Limitation - HELD THAT:- Considering the nature of the goods, the demand for the extended period was set aside in various cases - reliance can be placed in the case of Hindustan Construction Company Limited [1996 (9) TMI 156 - CEGAT, COURT NO. II, NEW DELHI] dealing with the issue that whether the crushing of stones into stones of smaller size amounts to manufacture, classifiable under sub-heading 2505 as in the present case, the Larger Bench by majority of order though held that the activities amount to manufacture but the demand for the extended period was set aside. The demand is not sustainable on limitation also - the impugned orders are not sustainable - Appeal allowed.
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