2014 (5) TMI 338

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....perations in the factory premises of the appellant. The activity of the appellant involves cleaning and testing of empty tin containers, affixing of lebels on the containers and thereafter filling up and sealing of the same. According to the department, this activity of the appellant would attract service tax as Business Auxiliary Service as defined under Section 65(19) of the Finance Act, 1994 read with Section 65(105)(zzb) ibid. It is on this basis that the department issued a show cause notice dated 27-4-2007 to the appellant for demand of service tax along with interest on the amount being received by them from M/s. Kirti Industries Limited and for imposition of penalty on them under the provisions of Finance Act, 1994. The show cause n....

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....513, 1514, 1515 & 1518 and sub-heading 1516.20, 1517.19, 1517.1010, 1517.1021 or 1517.1029 labelling or relabelling of containers and repacking from bulk to retail packs or the adoption of any treatment to render the product marketable to the consumer shall amount to manufacture, that the oil being manufactured by M/s. Kirti Industries Limited falls under Heading 1507 and, therefore, the activity of its packing from bulk to retail pack, and their labelling would amount to manufacture in terms of above mentioned Chapter Note 5 of Chapter XV, that since this activity amounts to manufacture, the same would not be covered by the definition of Business Auxiliary Service as defined under Section 65(105)(zzb) of the Finance Act, 1994 and that in v....