2020 (2) TMI 1449

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....aterial supplied by M/s. Shalimar Chemical Works Ltd. The raw material supplied are turmeric, red chilli, corianders, cumins which are converted into powder. Revenue is of the view that the activity of conversion of these spices into powder does not amount to manufacture. Therefore, with effect from 1-9-2009, the activity undertaken by the appellant of job work is covered under 'Business Auxiliary Services'. Therefore, two show cause notices were issued to the appellant asking service tax to be paid by the appellant under 'Business Auxiliary Services' for crushing, pulverising, converting and packing of spices as it does not amount to manufacture in terms of CBEC Circular dated 16-3-2000. The appellant contested the show cause notice but th....

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....ctivity and no new products emerge. He also relied on the decision of this Tribunal in the case of Sara Spices v. CCE, Cochin [2018 (362) E.L.T. 151 (Tri. - Bang.)] to say that the activity of crushing of chilli to make chilli powder does not amount to manufacture. Therefore, they are liable to pay service tax. 5. In rebuttal to argument advanced by Learned A.R., the Learned Counsel for the appellant submits that in the case of Sara Spices (supra), this Tribunal has relied on the decision in the case of Crane Beetle Nut Powder Works v. Commr. [2007 (210) E.L.T. 171 (S.C.)] and Krishna Chander Dutta (Spice) Pvt. Ltd. v. Commercial Tax Officer [1994 (70) E.L.T. 501 (S.C.)]. The facts of those cases are not applicable to the facts of t....