2014 (6) TMI 493

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....s. The Department was of the view, that this activity of SZDUSSL is 'Business Auxiliary Service' taxable under section 65(105)(zzb) read with 65(19)(v) of the Finance Act, 1994, as the same is 'production or processing of goods not amounting to manufacture'. On this basis two Show Cause Notices dt. 18.6.2010 for demand of service tax amounting to Rs.11,48,674/- for the period from 12.05.2005 to 10.05.2010 and dt. 30.06.2010 for demand of service tax amount to Rs.9,89,326/- for the period from 16.06.2005 to 31.03.2010 were issued. Both Show Cause Notices besides the demand of service tax also sought the levy of interest on the service tax under section 75 of the Finance Act, 1994 and sought imposition of penalty on the appellant under sectio....

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....e said that appellant has processed the milk for dairy as mere chilling of the milk would not amount to production or processing, that even if it is assumed that the appellant are carrying on any process on the milk, the activity of chilling would be the process of manufacture as per section 2(f) of the Central Excise Act, 1944, as the milk is highly perishable in nature and shelf life of the milk is very short, and after chilling it can be transported to distant places, that in view of this the appellant activity cannot be treated as production of processing of goods not amounting to manufacture, that the Tribunal in the case of Mewar Foods Pvt. Ltd. Vs. CCE, Jaipur, reported in 2013(32)-STR-612 (CESTAT-Delhi) has held that the process of ....