TMI Blog2019 (4) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out for manufacturing of goods is not subject to levy of service tax. A careful reading of paragraph 30 of Notification No. 25/2012 in this background would show that carrying out an intermediate production process as job work in relation to any goods on which appropriate duty is payable by the principal manufacturer, is not taxable. When the process carried out by the appellant amounts to manufacture, the very same activity cannot be considered as a service. Merely because the said activity is carried out on an intermediate product, Sl. No. 30(c) cannot be applied. Sl. No. 30 states an intermediate production process as job work , but does not say that such process will include manufacturing process . When the activity of manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The movement of materials for job work was carried out under job work challans. On further enquiry, the appellant stated that they collected job work charges only as their customer was the manufacturer who used the said goods as inputs/intermediate goods in further manufacture and paid Excise Duty on the same. 2.2 According to the Department, the said activity of carrying out an intermediate production process is job work in relation to any goods on which appropriate duty is payable by the principal manufacturer and is exempted from payment of service tax initially by Notification No. 12/2012-ST dated 17.03.2012 vide Sl. No 30(c) and later by Notification No. 25/2012-ST dated 20.06.2012 vide Sl. No. 30(c). Earlier, the said job work ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Section 11AC of the Central Excise Act, 1944. In appeal, the Commissioner (Appeals) vide impugned order dated 28.09.2018 upheld the same. Hence, this appeal. 3. On behalf of the appellant, Ld. Advocate Shri. T.R. Ramesh appeared and argued the matter. He filed written submissions which can be summarized as under : (i) The period involved is from April 2012 to March 2015. For the period prior to 01.07.2012, the definition of Business Auxiliary Service excludes manufactured goods from its purview. The definition clearly stated that any process undertaken for or on behalf of the client, does not include any activity that amounts to manufacture of excisable goods for the purpose of classification of the activity under Business Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order. He emphasized on Sl. No. 30(c) of Notification No. 25/2012. He submitted that any intermediate production process carried out by the appellant as job work in relation to any goods on which appropriate duty is paid by the principal manufacturer, is regarded to be an exempted service. The appellants having provided exempted service as well as manufactured dutiable products, cannot avail CENVAT Credit on Manpower Recruitment or Supply Agency Services which are input services common to both manufacture of finished goods and exempted services. Therefore, the demand raised is legal and proper. 5. Heard both sides. 6.1 The allegation is mainly based on Sl. No. 30(c) of Notification No. 25/2012 which is the Mega Exemption Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not subject to levy of service tax under the category of Business Auxiliary Service . After 01.07.2012, the Negative List of services under Section 66D of the Finance Act, 1994 specifically stated that any process that is carried out for manufacturing of goods is not subject to levy of service tax. A careful reading of paragraph 30 of Notification No. 25/2012 in this background would show that carrying out an intermediate production process as job work in relation to any goods on which appropriate duty is payable by the principal manufacturer, is not taxable. 7.2 The Department has been carried away by these words to hold that when the appellant has carried out an activity on the intermediate products, such activity is an exempted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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