Manufacture test for ready mix concrete processing determines whether Business Auxiliary Service tax can apply; demand remanded.

Processing of ready mix concrete by a job worker had to be tested under Section 2(f) of the Central Excise Act, 1944 to determine whether it amounted to manufacture; if so, the activity would fall outside Business Auxiliary Service and no service tax could be levied on that footing. The lower authorities had not examined this central question in sufficient detail, so the matter required fresh consideration. The Business Auxiliary Service demand was remitted to the adjudicating authority for a new decision after examining manufacture, while the GTA demand, not being contested, was upheld.

---

---

Issues: Whether the processing of ready mix concrete by a job worker amounted to manufacture under Section 2(f) of the Central Excise Act, 1944 so as to fall outside the ambit of Business Auxiliary Service and the service tax demand could be sustained.

Analysis: The processing activity was found to require a clear determination on whether it constituted manufacture under Section 2(f) of the Central Excise Act, 1944. If the activity was manufacture, it would stand excluded from the definition of Business Auxiliary Service and would not be taxable under service tax. The lower authorities had not examined this vital aspect in adequate detail, making fresh consideration necessary.

Conclusion: The demand relating to Business Auxiliary Service was remitted to the adjudicating authority for fresh decision after examining whether the activity amounted to manufacture. The GTA demand, not being contested, was upheld.

---