2011 (1) TMI 61

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....chana Wadhwa:   As per the facts on record, the appellant is engaged in the manufacture of alcoholic liquor for human consumption on job work basis for M/s Seagram. They also entered into an agreement with M/s Seagram for the said purpose as also to undertake the work of bottling of Seagram s alcoholic beverages at Seagram s plant located at Daurala and arrange the labour required for unde....

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....e imposed upon them.   3. The appellant contested the above Show Cause Notice on various grounds. One of the grounds was that the activity of bottling of alcohol amounted to manufacturing activity in terms of the provisions of Section 2(f) of the Central Excise Act, in which case no Service Tax can be levied on them. While dealing with the said plea of the appellant, Commissioner (Appeals)....

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....the powers to the States to Collect Excise duty. As such, he observed that the activities undertaken by the noticee do not amount to manufacture under 2(f) of Central Excise Act but fall under the category of business auxiliary services. He accordingly confirmed the demand.   4. After hearing both the sides, we find that the above issue is no more res integra. It is seen that judgement of ....

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....r Bench judgment in the case of Maa Sharda Wine Traders:- In view of the aforesaid, we answer the reference on following terms:   The decision rendered in M/s Vindhyachal Distilleries (supra) does not state the law correctly in as much as it has expressed the opinion that packaging and bottling of liquor are not the part of manufacturing process and hence, liable to service tax and we upho....