TMI Blog2013 (11) TMI 1454X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax along with interest and penalty is waived till the disposal of the appeal - Stay granted. - ST/696/2011 - MISC. ORDER No. 42592 / 2013 - Dated:- 8-10-2013 - Shri P.K. Das and Shri Mathew John, JJ. For the Appellant : Ms. Karthika Prasad, Adv. For the Respondent : Shri M. Rammohan Rao, DC(AR) JUDGEMENT Per Pradip Kumar Das: The applicants are engaged in the business of grinding of wheat into wheat products such as, maida, atta, suji, bran etc. A Show Cause Notice, dated 11.06.2010 was issued alleging that conversion into wheat into wheat products did not amount to manufacture under Section 2 (f) of the Central Excise Act, 1944. The job of grinding wheat for or on behalf of their customers appear to be liable f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, demand is sustainable. He further submits that the decision of the Hon ble Madras High Court as referred to by the learned Counsel is in respect of sales tax. In the rejoinder, the learned Counsel submits that the case law was referred to in the letter dated 06.03.2012 of the Chief Commissioner of Coimbatore. 4. After hearing both sides and on perusal of records, we find that the levy of service tax on wheat product had drawn the attention of the CBEC by the Chief Commissioner of Customs Central Excise, Coimbatore Zone and the relevant portion of the said letter dated 06.03.2012 is reproduced below:- 2. In this regard, it is informed that two Show Cause Notices were issued to Roller Flour Mills viz., M/s. Naga Ltd., in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lour mills are covered under Chapter 11 and the raw-material "Wheat" is classifiable under Chapter 10 of CETA, 1985. As the products "wheat" and "wheat flour" fall under different Chapters, the activity undertaken by flour mills amounts to manufacture and gets covered under the exclusion clause of the definition of Clause 19 of Section 65 of the Finance Act, 1994. In this regard the judgement of Hon'ble High Court of Madras in the case of United India Roller Flour Mills Ltd vs Union of India reported in 1981 (8) E.L.T.66 (Mad.) may please be referred, wherein the imposition of duty on "Maida" in the Finance Bill 1971 and exemption provided subsequently vide Not. No.162/71 dt 10.08.71 were discussed. Levy of duty on "Maida" confirms that con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural product is not at all changed and therefore it is to be excluded from levy of Service Tax under BAS in terms of Board's Circular No. 143/12/2011 -S.T. dated 26.5.2011, if it .is not treated as a manufactured product. 5. We have also noticed that Director (CX.1) of Ministry of Finance, Department of Revenue vide letter dated 18.07.2013 observed as under:- 2) The issue was examined and an O.M. of even no., dated 14.01.2013 (copy enclosed) was sent to the Service Tax Wing of CBEC, as the issue pertains to service tax on the activity of milling of wheat into wheat products under erstwhile classification of Business Auxiliary Service. As Service Tax Wing would have needed inputs from the Central Excise Wing on the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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