TMI Blog2008 (1) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... Services - Revenue plea that this process does not amount to manufacture & the appellants are liable to pay Service Tax, is accepted – in respect of exemption of cost of material from payment of service tax, same is allowed in view of not. 29/07 - ST/97/2007 and ST/237/2006 - - - Dated:- 3-1-2008 - S.L. PEERAN, Member (J) and T. K. Jayaraman, Member (T) Shri Kuryan Thomas, Advocate for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaken by the appellants. The appellants are engaged in the activity of powder coating the furniture, electric panel boards, metal cabinets for UPS, stabilizers, etc., and on other metallic items supplied by their customers/clients on job work basis. With effect from 16.6.2005, there was an amendment in the decision of the "Business Auxiliary Services" to include production or processing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.-Mumbai) it has been held that electroplating, a process of depositing a fine layer of metal on article by employing electricity does not amounts to manufacture, as the process does not result in the emergence of any new commodity. There are similar case laws. Therefore, we agree with the Revenue that this process of powder coating does not amount to manufacture and the appellants are liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he value of the goods sold to the customer. After taking into account and giving the benefit of the relevant Notification, the Service Tax liability has to be calculated by the Original Authority. Therefore, we allow the appeal by setting aside the impugned order and remanding the same to the Original Authority for re-computation of the tax liability within two months from the date of receipt of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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