2011 (8) TMI 789

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....shankar, Advocate, for the Appellant. Shri Ganesh Haavanur, SDR, for the Respondent. [Order per : M. Veeraiyan, Member (T)]. - Heard both sides extensively. 2. The applicant is a 100% EOU who is in the manufacture of Spice Oleoresin for export. They have also undertaken process of decaffeination of black tea supplied by M/s. Indian Products Ltd., another 100% EOU. The Department i....

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.... undertaken further processes and Appeal No. Period of Dispute Tax Amount Penalty ST/982/2009 2005-2006 Rs. 76,26,531-00 Rs. 76,26,531-00 u/s 78 Separate penalties u/s 76 & 77 ST/983/2009 April-Oct., 2006 RS-55,64,427-00 Rs. 1,11,289-00 (E. Cess) Penalties u/s 76 & 77 ST/984/2009 Nov., 2006-March, 2007 RS-36,79-891-00 Rs. 73,598-00 (E. Cess) Penal....

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....hat they are eligible for the benefit of Notification No. 8/2005-S.T., dt. 1-3-2005 as they have undertaken the service (as alleged by the Department) for production of goods on behalf of another 100% EOU. The goods returned by the appellant are liable to excise duty at the hands of supplying 100% EOU and the same are not being paid as they are eventually exported. 4. Ld. SDR submits that ....

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.... which is also returned back to the supplier. Further, the processes involved is a chemical process known as solvent extraction method and considering the nature of raw materials, the processes undertaken on the said raw materials and the end-product, we are, prima facie, in agreement with the claim of the applicant that they are undertaking manufacture of excisable goods on job work basis. The ju....