2017 (10) TMI 614

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.... Shri B. Balamurugan, AC (AR) for the Respondent ORDER Per: Bench The appellant is engaged in manufacturing of boilers and parts thereof. They are registered with the Central Excise Department and also with Service Tax Department. Appellant also undertakes various job work activities, mainly for M/s. BHEL, Trichy. Show cause notice dated 18.4.2007 was issued to the appellant proposing to....

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....cope of service of BAS as on 10.9.2004 covered only the activity 'production of goods on behalf of the client' and only from 16.6.2005, the scope was extended to cover 'production or processing of goods for or on behalf of the client'. The following decisions clearly hold that the job work activity carried for the client was covered under BAS only from 16.6.2005 and prior to the same it is not a t....

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....ment is of the view that such activities would amount to manufacture of goods. The Hon'ble Apex Court in the case of Commissioner of Income Tax, Kerala Vs. Tara Agencies (supra) has discussed the activity and observed as under: "All the three stages, namely, production, manufacturing and processing of tea can be enumerated as under. The tea is produced in the tea gardens. This first stage is ca....

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....f the opinion that the responden's activity amounts to 'processing' only and the activity does not amount to either 'production' or 'manufacture'. The term 'processing' has not been included in Section 35B(1A) of the Act, therefore, the respondent is not entitled for weighted deduction under Section 35B(1A) of the Act'. 5. Following the same, we are of the view that the activity of the appellan....