TMI Blog2013 (5) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... usion in the definition of business auxiliary service which provides that if the process amounts to manufacture, no service tax would be liable to be paid. In this case, the 100% EOU viz., M/s. Tyco Electronics to whom the appellants have supplied the goods on job work basis is eligible for exemption Notification No.24/2003-CE dated 31.3.2003. Stand of the department that this notification exempts 100% EOU from payment of duty and therefore the appellant is not eligible for the benefit of Notification No.8/2005-ST is not acceptable as this is not an unconditional exemption notification. Exemption is available only if the goods are not brought to any other place in India. Since exemption under Notification No.24/2003 is not an unconditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d stay of recovery and the appeal were pending before this Tribunal, the department proposed to recover the amounts demanded in the order-in-original. The appellants filed a writ petition before the Hon ble High Court of Karnataka seeking writ of mandamus to the department not to initiate any coercive action to recover the adjudication levies. The Hon ble High Court in their order dated 25.2.2013 directed that the department should not resort to any coercive steps till the stay application is disposed of by the Tribunal and the stay application filed by the appellant should be considered by the Tribunal within three weeks and the appeal itself should be disposed of within four weeks from the date of receipt of the order. The order of the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess undertaken by the appellant amounts to manufacture. He submits that the process undertaken by the manufacturer in this case impart special qualities which are not existing in the raw material supplied and they acquire a totally different character and also it amounts to completion or finishing of the incomplete product. Further, he also submits that the stand of the department that appellant is liable to pay service tax in view of the fact that the product supplied by them to M/s. Tyco Electronics, which is a 100% EOU is eligible for exemption under Notification No.24/2003 CE dated 31.3.2003, the appellant is not eligible for exemption under Notification No.8/2005 ST dated 1.3.2003 is not correct since Notification No.24/2003 does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cases, for completion into a finished article or a part), into complete or finished article shall amount to manufacture. 5.2 Further even before this section-note was introduced, this Tribunal had considered the issue as to whether electroplating amounts to manufacture or not in the case of Modison Metal Refiners (supra). In that case also, the Tribunal was considering the question as to whether electroplating of electrical contacts amounts to manufacture or not. This Tribunal taking note of the decision of the Hon ble Supreme Court in the case of TISCO vs. UOI: 1988 (35) E.L.T. 605 (S.C.) had held that electroplating would amount to manufacture. On the other hand, we have briefly considered all the decisions taken note of by the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate duty of excise, shall not include nil rate of duty or duty of excise wholly exempt. We find ourselves in agreement with the submission that the Notification when read with the appropriate duty of excise would mean that only when the goods manufactured by the principal manufacturer attract nil rate of duty as per tariff or unconditional full exemption, the benefit of Notification No.8/2005 is denied. In this case, the 100% EOU viz., M/s. Tyco Electronics to whom the appellants have supplied the goods on job work basis is eligible for exemption Notification No.24/2003-CE dated 31.3.2003. It is the stand of the department that this notification exempts 100% EOU from payment of duty and therefore the appellant is not eligible for the benef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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