TMI Blog2018 (7) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... m spoiling - The identical issue has come up before the Tribunal in the case of Vinayak Industries, [2016 (6) TMI 1072 - CESTAT NEW DELHI], where the Tribunal has observed that chilling of milk amounts to manufacture and it is settled law that process amounting to manufacture is not liable to service tax - appeal dismissed - decided against Revenue. - Service Tax Appeal Nos. ST/52915 & 50436/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. The Department took the view that the activity of chilling undertaken by the assesses is to be considered as a process on which service tax is leviable under the category of business auxiliary service. In the Appeal No. ST/52915/2018, the impugned order has dropped service tax levy and Revenue is in Appeal. In the case of the other Appeal No. ST/50436/2015, the lower authority has upheld the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumer shall amount to manufacture. 4. It is his submission that the process of chilling has rendered the milk marketable and hence is an activity which is to be considered as manufacture‟ under Central Excise and no service tax can be levied. In this connection, he brought to our notice the following decisions of the Tribunal where similar view has been taken:- (a) Vinayak Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r activity like pasteurization etc. is involved. We are of the view that mere chilling of milk to temperature below 5◦ Celsius for the purpose of its long distance transportation, does not amount to production or processing of goods, as there is no permanent or temporary change in milk other than lowering of the temperature by the process of chilling of milk, due to which it can be transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also find that earlier, the Commissioner (Appeals) on this very issue had taken view that chilling of milk is not Business Auxiliary Service covered by Section 65 (19) (v) of the Finance Act, 1994. In view of this we hold that impugned order is not sustainable. The same is set aside. The appeal as well as the stay application and the application for early hearing stands disposed off. 7. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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