TaxTMI 
TaxTMI 
2019 (6) TMI 326
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....Mother Dairy for undertaking various processes on the raw milk received by them from Mother Diary. The said processes were chilling, pasteurization, homogenization and standardization etc. to convert raw milk into toned milk. The fully converted milk into toned milk is further transported by appellant back to Mother Dairy. It may be mentioned here that a part of the tone milk dispatched by the appellant to Mother Dairy is received back by them for the purposes of further testing, storage etc. as sample. 2. Revenue by entertained a view that the said activities undertaken by appellant for M/s.Mother Dairy amounts to providing services falling under the category of 'Business Auxiliary Services'. Accordingly proceedings were initiated agains....
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....bulk pack to retail packs or the adoption of any other treatment to render the product marketable to the consumer shall amount to 'manufacture'. As such it is his submission that inasmuch as the processes undertaken by them are for the purpose of rendering the raw milk as marketable product, the deeming definition of manufacture provided in terms of said chapter note 6 would be fully applicable in their case. He submits that the findings of the Commissioner that they have worked on the toned milk inasmuch as the same was received back by them from M/s.Mother Dairy are factually incorrect inasmuch as such receipt back of the toned milk was with a different purposes i.e. as controlled sample as per the agreement itself. The said sample is mer....
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....oods. As such it can be safely concluded that if the processes or production for and on behalf of another person amounts to manufacture, the same would not get covered by the definition of business auxiliary services. As regards the plea of manufacture we note that chapter note 6 of chapter 4 is to the following effect.:- "6. In relation to products on this chapter labeling or re-labeling of containers or re-packing from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to manufacture." The said chapter note is in the nature of a deeming clause holding the activities as amounting to manufacture, in case the same are clearly not covered by the definition of ....
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....rate and distinct from the raw milk has to be held as a manufactured item. If that be so, the definition of business auxiliary services would not be satisfied inasmuch as the same specifically excludes the processes which amount to manufacture. As such we find no justifiable reasons to uphold the impugned order. 6. Before we part, we may refer to some of the judgements referred to by the learned Advocate. In the case of Acclaim Foods Private Ltd. v. Commissioner of C.Ex., & S.T., Jaipur-I [2018 (10) G.S.T.L. 66 (Tri.-Del.)], chilling of milk to required temperature was held as an activity not covered under business auxiliary services so as to attract Service Tax. To the same effect is the Tribunal's decision in the case of Vinayak Industr....