https://www.taxtmi.com/caselaws?id=787191 Job-work processes treated as manufacture under Notification No. 214/86-CE cannot simultaneously be classified as exempted services for Cenvat Credit Rules purposes. Rule 6 requires separate accounts or permits specified compliance options where taxable and exempted services coexist, but the Rule 6(3) option cannot be imposed by Revenue. Once the activity is characterised as manufacture rather than a service, no basis remains to demand payment for common input services allegedly used in exempted job work, or to impose related interest and penalties. The demand and appellate confirmation are unsustainable, and the appeal succeeds for the assessee. en-us Thu, 19 Feb 2026 00:00:00 +0530 Sat, 28 Feb 2026 08:41:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787191 Job-work processes treated as manufacture under Notification No. 214/86-CE cannot simultaneously be classified as exempted services for Cenvat Credit Rules purposes. Rule 6 requires separate accounts or permits specified compliance options where taxable and exempted services coexist, but the Rule 6(3) option cannot be imposed by Revenue. Once the activity is characterised as manufacture rather than a service, no basis remains to demand payment for common input services allegedly used in exempted job work, or to impose related interest and penalties. The demand and appellate confirmation are unsustainable, and the appeal succeeds for the assessee. Case-Laws Service Tax Thu, 19 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787191