TMI Blog2020 (2) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant s activity falls under the definition of manufacture and not as taxable service falling under BAS. Both the authorities have not properly appreciated the processes explained by the appellant vis- -vis the Chapter Note 3 of Chapter 16 CETA, 1985. The definition of BAS is also examined and it is found that the activities carried out by the appellant do not fall under the BAS as defined under Section 65(19) of the Finance Act - Further as far as demand of service tax on renting of immovable property is concerned, we find that if the other activity carried on by the appellant amounts to manufacture, the demand of service tax on renting of immovable property amounting to ₹ 3,59,574/- will fall in the threshold limit and is exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed ₹ 3,59,574/- OIA No. COCEXCUS-000-APP-680 681-2018 dt. 24/07/2018. Upheld the OIO. Since the issue involved in all the 4 appeals is identical, all the 4 appeals are taken up together for discussion and disposal. For the sake of convenience, the facts of appeal No.ST/493/2009 are taken. 2. Briefly the facts of the present case are that the appellant is a public limited company having its registered office at Trissur and they are engaged in processing and packing of marine products for merchant exporters. They entered into a contract with M/s. SLS Exports Pvt. Ltd., Cochin, on 01/07/2005. On 21/12/2005, the Central Excise officers from Calicut Commissionerate issued a summons for certain docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal without giving any reasons. He further submitted that the Commissioner(Appeals) has only observed in the impugned order that the appellant has not followed the Central Excise procedure and therefore the appellant cannot be allowed to take the plea that they are covered under the Central Excise just because service tax has been imposed on them. He further submitted that in the subsequent show-cause notice dt. 20/04/2009 which is subject matter of appeal No.ST/20383/2016. The original authority after considering the detailed submissions and the processes carried out by the appellant dropped the demand. Aggrieved by the said order, the Department filed appeal before the Commissioner(Appeals) and the Commissioner(Appeals) set aside the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y virtue of Chapter Note 3 of the said Chapter 16. In support of his submissions, the appellant relied upon the following decisions:- i. Abraham J. Tharakan Vs. CCE, Cochin [2007(210) ELT 112 (Tri. Bang.)] ii. J.K. Synthetics Ltd. Vs. CCE, Jaipur [1998(97) ELT 310 (Tri.)] iii. Ponds (India) Ltd. Vs. CCE [1993(63) ELT 3 (Mad.)] iv. CCE, Vadodara Vs. Pioneer Scientific Glass Works [2006(197) ELT 308 (SC)] 5. On the other hand, the learned AR defended the impugned order. 6.1. After considering the submissions of both the sides and perusal of the material on record, we find that the only issue to be decided in the present set of appeals is whether the activity of the appellant can be termed as taxable service under the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter product appearance additives like ML TR-79, Caffdos, Altesa etc are used, which is next stage of processing. This semi processed material is then weighed, chlorinated glaze water is added to each block to act as protective covering to the product. This processing material is then located in contact plate freezer and frozen for 90 minutes. This is the end product. This product is packed in corrugated cartons, strapped and stored in the frozen storage maintaining at minus 18 degree Celsius. When sufficient cargo is ready, this will be shipped to the overseas buyers by M/s. SLS Exports. So, after the various stages of processing of the raw materials received a commercially distinct product is obtained with a brand image and acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... render the product marketable to the consumer. From the perusal of the definition of manufacture, it is clear that the term manufacture within its ambit also includes any processes which are specified in relation to any goods in the Section or Chapter Notes of the First Schedule of the CETA, 1985. Further we find that the activity of the appellant falls under Chapter 16 of the CETA, 1985 by virtue of Chapter Note 3 of the said Chapter 16 which is extracted below:- In relation to the products of this Chapter, labeling or relabeling of containers or repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to manufacture . 6.2. It is not in dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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