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TMI Blog2024 (6) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... uyers to the appellant for strapping the steel rolls. For the job work undertaken by them at the premises of such buyers, two Show Cause Notices were issued for the period 01/04/2007 to 31/03/2009 on 07/04/2010 and for the period 01/04/2009 to 31/03/2010 on 19/04/2011. It was alleged that the services rendered by the Appellant firms under the category of "Business Auxiliary Service" and the Appellant has failed to pay the Service Tax for such services. After due process, the Adjudicating Authority confirmed the demand vide OIO No. 71/Commr/ST/Kol/2011-12 dated 02/02/2012. Being aggrieved, the Appellant is before the Tribunal. 2. The Learned Advocate appearing on behalf of the Appellant submits that the activity undertaken by them amounts t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regularly. In this particular case, it is not disputed that on the strips cleared by them, the Excise Duty has been paid. The Appellant is using strips already bought by the client and given by them to the Appellant at the premises of the clients for strapping the steel coils. Admittedly, there is no dispute that the Excise Duty is being paid by the clients for the finished goods i.e. Steel Rolls cleared by them. In such a case, there is no question of suppression on the part of the Appellant. The details have been properly reflected in the Returns. Therefore, he submits that the confirmed demand for the extended period is liable to be set aside on account of limitation also. 5. The Learned AR reiterates the findings of the Adjudicating A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction or processing of goods for, or on behalf of, the client referred in sub-clause (v) of clause (19) of section 65 of the said Finance Act, from the whole of service tax leviable thereon under section 66 of the said Finance Act: Provided that the said exemption shall apply only in cases where such goods are produced or processed using raw materials or semi-finished goods supplied by the client and goods so produced or processed are returned back to the said client for use in or in relation to manufacture of any other goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as amended by the Central Excise Tariff (Amendment) Act, 2004 (5 of 2005), on which appropriate duty of excise is payable. 9. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing into existence a new distinct commodity. It is more in the nature of packing the products manufactured by their client. Therefore, we find no force in the arguments of the appellant that they are excluded from the definition of business auxiliary services by virtue of the proviso to the definition. We find it is the contention of the department that appellant is covered by section 65(19)(v) of the Finance Act, 1994 in as much as they are involved in the activity of production of goods on behalf of their client. The appellant does not dispute this and, in fact, he goes one step further and argues that their activity amounts to manufacture which we do not find so. Notification No.8/2005-ST dated 01.03.2005 reads as follows: "......the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y covered by the above decision of the Tribunal. Following the ratio laid down in the cited case law, we allow the Appeal on merits. 11. We also find force that the Appellant being manufacturer and recipient of service would have been filing their ER-1 Returns and ST-3 Returns before the authorities. The Appellant also would be carrying a bonafide belief that since the Excise Duty is paid by the Steel manufacturers after strapping, they are well covered by the exemption under Notification No. 08/2005. Therefore, in such cases, the Appellant cannot be fastened with the suppression clause to demand the Service Tax for the extended period. We set aside the confirmed demand for the extended period on account of limitation. 12. On the above, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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