2015 (10) TMI 779

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....nterest thereof and penalties. 2. The brief facts involved in the appeal are that the appellant, who is a holder of Central Excise Registration was engaged in the manufacture of pharmaceutical products falling under Chapter heading No.30 of the CETA, 1985; that the appellant entered into an agreement dated 1.11.2005 with M/s. Bayers Pharmaceuticals Private Ltd, Mumbai for manufacture of the product called "Bayer Tonic II" on job work basis; that the product "Bayer Tonic II" was an alcoholic preparation which was not covered under the Central Excise Tariff Act and accordingly, the activity of manufacture of the said product for other persons attract service tax under the taxable category of Business Auxiliary Service (BAS in short) ; that....

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.... manufacture and hence liable for service tax under business auxiliary services. He would submit that the medicines manufactured by the appellants undoubtedly arise out of manufacturing process. He would submit that since the definition of business auxiliary services excludes any activity that the amounts to manufacture as per provisions of section 2 (f) of Central Excise act, 1944, does not mean that medicines containing alcohol are not manufactured items. He would submit that the issue is now squarely settled by the judgement of Tribunal in the case of Rubicon formulations Pvt. Ltd., Vs. C.C., C.E. & S.T., Aurangabad 2010 (19) S.T.R. 515 (Tri.- Mumbai) and Midas Care Pharmaceuticals Vs. Commr. Of C. Ex. Aurangabad 2010 (18) STR 768 (Tri-M....