TMI Blog2021 (12) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... In CMS (I) OPERATIONS MAINTENANCE CO. P. LTD. VERSUS C. CE, PONDICHERRY [ 2007 (5) TMI 74 - CESTAT, CHENNAI ], the Southern zonal Bench of the CESTAT held that electricity was manufactured goods in terms of Section 2(f) of the CE Act and, therefore, the activity of electricity generation was not liable to service tax as Business Auxiliary Service under Sections 65 (19) read with 73 of the Finance Act. The Court finds no reason to interfere with the impugned order of the CESTAT in the present case - Appeal dismissed - decided against appellant. - OTAPL No. 29 of 2009 - - - Dated:- 24-11-2021 - THE CHIEF JUSTICE DR. S. MURALIDHAR AND JUSTICE A. K. MOHAPATRA For the Appellant : Mr. Choudhury Satyajit Mishra, Senior Stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture ; or (iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer, and the word manufacturer shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account; 4. Section 65 (19) of the Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rily in relation to operation of computer systems. 5. Clearly, therefore, the Business Auxiliary Service excludes activity that amounts to manufacture. 6. In Orient Paper Industries Ltd. v. Orissa State Electricity Board 1989 (42) E.L.T. 552 (Orissa), it was held that electricity that has been specified in the First Schedule to the CE Act after its amendment was excisable goods and, therefore, generation of electricity should be understood as manufacture or production of electricity. 7. In CMS (I) Operations Maintenance Co. P. Ltd. v. C.C.E. Pondichery 2007 (7) S.T.R. 369 (Tri.-Chennai), the Southern zonal Bench of the CESTAT held that electricity was manufactured goods in terms of Section 2(f) of the CE Act and, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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