TaxTMI 
TaxTMI 
2013 (11) TMI 1454
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.... job of grinding wheat for or on behalf of their customers appear to be liable for service tax and proposed demand of service tax of Rs.3,03,91,110/- along with interest and penalty for the period Jun.05 to Mar.10. Tax was demanded under the category of Business Auxiliary Service. Adjudicating authority confirmed the demand of tax along with interest and penalty. 2. The learned Counsel for the applicant submits that all over the country, this activity treated as manufacture under the Central Excise Act, 1944. She submits that only the Madurai Commissionerate raised demand of service tax. She drew the attention of the Bench to the letter dated 06.03.2012 of the Chief Commissioner of Central Excise, Coimbatore Zone addressed to CBEC and le....
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....nbsp; 2. In this regard, it is informed that two Show Cause Notices were issued to Roller Flour Mills viz., M/s. Naga Ltd., involving a sum of Rs.3,03,91,110/=, and M/s. Jaya Krishna Flour Mills (P) Ltd ., for an amount of Rs.1,10,54,319/=, by Commissioner of Central Excise, Madurai demanding Service Tax under "Business Auxiliary Service" for their activity of "Custom Milling" of wheat into wheat products and both the demands were confirmed and equal penalty has been imposed. The copies of the Order-in-Original are enclosed. CCE, Madurai concluded that the process of "Milling or Grinding" of wheat merely changes the physical character of wheat into various forms without addition of any ingredient and that there is nothing either in Section ....
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....the imposition of duty on "Maida" in the Finance Bill 1971 and exemption provided subsequently vide Not. No.162/71 dt 10.08.71 were discussed. Levy of duty on "Maida" confirms that conversion of wheat into "Maida" amounts to manufacture to attract levy under Section 3 of the Central Excise Act, 1944. b) The decision in the case of M/s.Crane Betel Nut Powder Works reported in 2007 (21) ELT 171 (SC) relied upon by the Commissioner, Madurai, pertains to the period when "Supari" was not specifically stated as manufacture in the CETA. Now, as per the amended Chapter note 6 of Chapter 21 of CETA, the process of adding or mixing cardamom, copra, menthol, spices, sweetening a....