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2015 (6) TMI 659 - CESTAT MUMBAI

2015 (6) TMI 659 - CESTAT MUMBAI - 2015 (40) S.T.R. 757 (Tri. - Mumbai) - Business Auxiliary service - Job work - Manufacture - process of converting 'Para Nitro Cumene, in to 'Para Cumidine' - Held that:- Both the lower authorities have wrongly concluded that the processing activity undertaken by the appellant does not amount to 'manufacture' for more than one reason. Firstly, it is undisputed that the goods or inputs were received by the appellant from the principal manufacturer under job work .....

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he appellant's factory premises is definitely an activity of 'manufacture' inasmuch as, the finished goods coming into existence after processing are different from the inputs which are put into use.

When there is a chemical reaction involved, the finished goods coming after the chemical reaction cannot be said to have been not manufactured. We perused the chemical formula and the properties of the inputs and of the final goods and we find that there is a difference between the two wh .....

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ri Sanjay Dwivedi, Adv. For the Respondent : Shri B Kumar Iyer, Superintendent (AR) ORDER Per: M V Ravindran: This appeal is directed against Order-in-Appeal No. PIII/VM/64/2010 dated 29/03/2010 passed by the Commissioner of Central Excise (Appeals), Pune - III. 2. The relevant facts that arise for consideration are the appellants herein are registered with the Central Excise Department for manufacture of excisable goods falling under Chapter 29 of Central Excise Tariff Act, 1985. On scrutiny of .....

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said amount is a consideration on which service tax liability arises under the category of 'Business Auxiliary Services' in terms of Section 65(19) of the Finance Act, 1994. 3. Show-cause notice was issued for demand of service tax liability interest thereof and proposing to impose penalties. The appellant contested the show cause notice on merits, taking a plea that the goods manufactured by them under job-work is amounting to manufacture hence service tax liability will not arise. The .....

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ara Cumidine' is different from the input product 'Para Nitro Cumene'. He also argued that the product 'Para Cumidine' is used by the principal manufacturer in the manufacture of finished goods in their factory. Learned Counsel would take us through the job-work challan issued by the principal manufacturer, which is as per the provisions of Rule 4(5)(a) of the CENVAT Credit Rules, 2004. He would submit that the findings recorded by the lower authorities as to the activity und .....

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It is his submission that the impugned order be set aside. 5. Departmental Representative, appearing for the Revenue, on the other hand, would submit that the appellant is processing goods on behalf of his clients and is not discharging the Central Excise duty. Hence, he is correctly charged with non-payment of service tax liability. He reiterates the findings of the lower authorities. 6. We have considered the submissions made at length by both sides and perused the records. The issue before u .....

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ncipal manufacturer in the manufacturing of the finished product. 8. It is the case of the revenue that the activity undertaken by the appellant would fall under the expression "production of goods or provision of services on behalf of the client" under the category of 'Business Auxiliary Services' w.e.f. 28 th February, 2005. The said findings are recorded on the findings that the process carried out by the appellant does not amount to "manufacture". 9. In our consid .....

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