TMI Blog2018 (5) TMI 1469X X X X Extracts X X X X X X X X Extracts X X X X ..... rocessing and completion of Solar Photovoltaic Module - The lower appellate authority has noted that the SCN is limited to the activity of ‘lamination‟, however it is silent on how the lamination does not amount to 'manufacture'. The lower appellate authority arrived at a conclusion that activity “lamination’ for which the job order was given to the respondent by the 100% EOU is in fact, a series of activities to manufacture “Solar PV Laminate’ and that the process amounts to ‘manufacture‟ within the meaning of Section 2(f) of the Central Excise Act, 1944, hence the job work activity will not attract levy of service tax under “Business Auxiliary Service’ as defined in Section 65 (19) of the Finance Act, 1994. We are not able ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice dt. 6.7.2009 was issued to the respondents, inter alia proposing demand of service tax of ₹ 48,95,506/- along with interest thereon for the period 10.09.2004 to 31.12.2008 and imposition of penalties under various provisions of law. In adjudication, original authority vide an order dt. 14.12.2009 confirmed the proposed tax demand with interest and also imposed penalties under Section 77 78 of the Finance Act, 1994. In appeal, the Commissioner (Appeals) vide impugned order dt. 05.01.2011 held that the activity of lamination by the assessee on job work basis to their client USL amounts to manufacture‟ and as consequence, the said activity would not attract levy of service tax under BAS. On these grounds, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a new product emerges. Therefore, such process is not covered by the BAS. Ld. Advocate displayed a sample of the solar cell received from the principal (EOU) and also the solar panel array that emerges after job work activity. Although the SCN has alleged that only lamination process is done by respondents, in fact a number of processes are undertaken in the job work and lamination is only one of such processes. Only after all these processes are completed solar cell becomes a solar cell array or solar laminate which is thereafter sent back to the principals. The job work was performed by the respondents only based on the permission granted by the jurisdictional AC to the principals (EOU) as per the conditions of Notification No.214/86- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption under notification 8/2005-ST dt. 1.3.2005 is available for the period from 1.3.2005. Reliance is placed on the decisions rendered in the case of Interplex Electronic India P. Ltd. Vs CST Bangalore 2014 (33) STR 56 (Tri.-Bang.) and Super Springs Pvt. Ltd. Vs CCE ST Coimbatore 2018 (4) TMI 1104 - CESTAT Chennai. 4. Heard both sides and have gone through the facts. 5. From the facts on record as narrated in the SCN, the impugned order and even in the grounds of appeal, it cannot be disputed that respondents receive Photovoltaic Cells from their principal on which they carry out job work, resulting in Photovoltaic Solar Laminate. As per the narration in para 4.3 of the impugned order, it is brought out that the following activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unity to the respondent to offer their comments or defend against the said report of the jurisdictional Deputy Commissioner. The lower appellate authority has then gone to thoroughly analyse the definition of manufacture‟ in Section 2(f) of the Central Excise Act, the nature of Photosensitive Conductor Devices, the relevant Harmonized System of Nomenclature (HSN notes) and has found that item Solar PV Laminate resulting out of the job work would merit classification under CTH 8541 40 11 of the Central Excise Tariff Schedule. Only after such exhaustive analysis and findings, has the lower appellate authority arrived at a conclusion that activity lamination for which the job order was given to the respondent by the 100% EOU is in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
