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TMI Blog2023 (12) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... with M/s. United Breweries Limited which was amended from time to time, under which, alcoholic liquor (Beer) bearing the brand names 'Kingfisher' & 'Bullet' owned by M/s. United Breweries Limited ( M/s UBL) would be manufactured by the appellant under job-work basis, under the complete control and supervision of M/s UBL. 2. Post the amendment to the definition of "Business auxiliary Service" (BAS for short) under Section 65(19) of Finance Act, 1994 w.e.f 1.09, 2009 the exemption from the production or processing of goods for or on behalf of the client had been restricted to the "excisable goods" and thus, in this case, admittedly the alcoholic liquor for human consumption are not "excisable goods" and hence the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on any of the inputs, including raw materials, packing materials, consumables etc pertaining to the goods in question as well as the period in dispute, the Appellant has before us filed an Affidavit dated 26.10.2023 to the above extent, which they submitted is in due compliance to avail the benefit under the above said Notifications. The appellants also inter alia took other grounds 4. Heard Learned A.R, he reiterates the findings and pleads that benefit of exemption notification can only be allowed on fulfillment of conditions and not on the basis of any assurance. 5. Further, refence was drawn to the decision of the Hon'ble Delhi High Court in the case of Carlsberg India Private Limited, International Spirits and Wines Association o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lcoholic liquor for human consumption" It is significant that the Respondents in their written submissions have confirmed that "service tax is only being imposed on the value of the services provided by the job worker/contract manufacturer and not on the whole sale price of alcohol." 5.1 In view of the above decisions as well as the Notification as well as the departmental communication, it is amply clear that the cost of the inputs including raw materials, packing materials, consumable etc, as well as the brand owner's profit and reimbursable expenses cannot be included in the assessable value of taxable service provided by the appellant, and the service tax shall only be imposed on the service provided by the job worker. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant have entered into a contract with M/s. United Breweries Limited (UBL) for manufacture and sale of alcoholic liquor (beer) for human consumption, for and on behalf of M/s . UBL. 6.1 The appellant have entered into a contract with M/s. UBL for manufacture and sale of 'Beer', for and on behalf of M/s. UBL and during the course of the said activities, they have provided services in relation to such manufacture and sale of beer, which is an alcoholic liquor for human consumption, to M/s. UBL. The said services provided by the appellant appeared to be taxable under the category of "Business Auxiliary Services" as defined under Section 65(19) of Chapter V of the Finance Act, 1994 read with Section 65(105)(zzb) of the Act, ibid in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F. No. 334/13/2009-TRU dated 06.07.2009 has clarified the issued as under: 3.1 Modification in Business Auxiliary Service (BAS) [section 65(19): It may be recalled that production or processing of goods for or on behalf of a client falls within the purview of this service. However, if any such activity amounts to manufacture within the meaning of section 2(f) of the Central Excise Act, the same is excluded from its purview. This exclusion has been modified to state that it would apply only if the activity results in manufacture of 'excisable goods'. Both words/ phrases i.e. 'manufacture' and 'excisable goods' would have the same meaning as defined under the Central Excise Act. The impact of this change would be tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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