2018 (9) TMI 1061

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....akkad, which were cleared on payment of central excise duty. M/s. BPL Telecom Ltd., Palakkad has issued a separate purchase order for Galvanization and powder coating of the cabinets. The appellant, in turn, sent the goods to job workers viz. M/s. Sunshine, Chennai and M/s. Molax Powder Coating, Coimbatore for carrying out the said processes, respectively. The clearance to the job workers are made under delivery challan. Payments for the above activity was received by the appellant from M/s. BPL Telecom Ltd. and they, in turn, paid it to the said job workers. The case of the Department is that the activity of powder coating and galvanization undertook by the job workers would fall under the category of "Business Auxiliary Service" and the a....

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....d the rival contentions and carefully perused the documentary evidences furnished during the course of the hearing in the paper book. The core issues involved concern the availability of exemption in terms of Notification No. 8/2005 as also whether the appellant has provided Business Auxiliary Services. 5.2 We find that Chapter Note 4 to Chapter 73, as pleaded by the learned Counsel for the assessee, clearly holds that in relation to products of the said chapter, the process of galvanization shall amount to "manufacture". This being so, the process of galvanization will stay out of the purview of Business Auxiliary Services, because, by definition, the BAS specifically excludes the activity of manufacture. 5.3 Coming to the eligibilit....

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....enue relied upon the findings of lower authority and submit that the activity undertaken by the appellant does not amount to manufacture as the appellants were clearing the goods under Notification No. 214/86 at nil rate of duty is also submitted. Hence, the demand is rightly made. 6. We find that the appellants are undertaking the activity of powder coating and chrome plating for various motor vehicle parts and was working Notification No. 214/86-CE. The appellants are receiving the motor vehicle parts from principal manufacturer and after undertaking the activity of powder coating cleared to the principal manufacturer and the same goods are used in the manufacture of excisable goods cleared on payment of duty. As the processes undertak....