TMI Blog2017 (10) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income Tax, Kerala Vs. Tara Agencies [2007 (7) TMI 4 - SUPREME COURT OF INDIA] has held that On clear construction and interpretation of Section 35B(1A) of the Act, we are clearly of the opinion that the responden’s activity amounts to ‘processing’ only and the activity does not amount to either ‘production’ or ‘manufacture’. The term ‘processing’ has not been included in Section 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued to the appellant proposing to demand service tax of ₹ 48,470/- along with interest for the above activity under Business Auxiliary Service for the period from 10.9.2004 to 28.2.2005 by invoking extended period. The notice also proposed to impose penalty under sections 76, 77 and 78 of Finance Act, 1994. After due process of law, the original authority confirmed demand of service tax of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16.6.2005 and prior to the same it is not a taxable activity. She relied upon the judgment in the case of M/s. Tara Agencies - 2007 (214) E.L.T. 491 (S.C.) as well as the following judgments: (a) Sonic Watches Ltd Vs. Commissioner of Central Excise, Vadodara - 2011(21) S.T.R. 34 (Tri.-Ahmd) (b) Rathour Engineering Works Vs. Commissioner of Central Excise, Chandigarh - 2012(27) S.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under. The tea is produced in the tea gardens. This first stage is called production of tea. The second stage is manufacture of tea. In this stage, the tea leaves are plucked from the tea bushes and by mechanical process, tea leaves are converted to tea. This second stage is considered manufacturing of tea. The third stage is blending of different qualities of tea in order to smoothen its market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Following the same, we are of the view that the activity of the appellants would not amount to manufacture. Similar view was taken in the case of Sonic Watches Ltd, and above cases relied by the appellant. 6. From the above, we hold that the demand is unsustainable. The impugned orders are set aside. The appeals are allowed with consequential reliefs, if any. (Operative portion of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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