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2023 (10) TMI 229
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....es in to the irradiation cell, exposing the boxes to the radiation filed for specified period and then taking them out of the cell. That disputed activity of "Sterilizing Services" is one wherein the duly packed product is exposed to gamma radiation in a closed plant with a predetermined dose as per the nature and timing requirement for the product. During this process, gamma radiation penetrates into the product and it breaks the DNA structure of bacteria/ microbes. As a result of the same, the product shelf life increases in case of agriculture or like items and in other cases like hospital items/ pharmaceutical items, it sterilizes the product. 1.1 The material on which the abovementioned process is carried out is obtained by the Appe....
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....e find that the very same activity on job work basis, in the case of appellant itself for the period prior to 01.07.2012 was considered by this Tribunal in order dated 19.06.2023, wherein the Tribunal has passed the following order: "Brief facts of the case are that appellant are engaged in the process of sterilizing goods of their client on job-work basis and for which the job charges are collected. The case of the department is that the said activity falls under the category of Business Auxiliary Service under sub-head "production of processing goods on behalf of client" accordingly, the same is taxable. The department also denied exemption under Notification No.8/2005 on the ground that, firstly the client has not supplied raw m....
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....ivity of processing of goods on behalf of the clients which is covered under taxable entry of Business Auxiliary Service. For the processing activity there is an exemption notification 8/2005-ST. Both the lower authorities have denied exemption on the ground that firstly, the appellant have not received raw material for processing and secondly, after processing the goods were not used in the manufacture by the client. To understand whether the contention of the Revenue is correct or otherwise it is necessary to read the notification carefully which is reproduced below:- "Job work - Service tax exemption to goods produced on behalf of client In exercise of the powers conferred by sub-section (1) of section 93 of the Finance....
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.... above notification it is clear that not only the raw material should be processed by the job-worker but even some finished goods are also to be processed for the eligibility of exemption notification. In the present case, the packed goods were supplied to the appellant for carrying out process of sterilization therefore the packed goods before sterilization are semi-finished goods. Therefore the contention of the Revenue that only raw material should be processed to be eligible for exemption is incorrect as semi-finished goods are also allowed to be processed for making eligible for the above notification. 5. As regards the contention of the Revenue that after processing the same should be used by the principal client for further ....
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....ary Service in particular production or processing of goods on behalf of client. As we have already recorded above that there is no dispute about the taxability of service under the sub-heading of production or processing of goods on behalf of client, under taxable entry of Business Auxiliary Service, but the issue involved in the present case is eligibility to Notification No. 8/2005-ST. The aforesaid clarification does not deal with the issue of such exemption notification therefore the above clarification is of no help to the Revenue in the present case. 7. Accordingly, the demand is not sustainable hence the impugned order is set-aside and the appeal is allowed." From the above decision, it can be seen that the Tribunal has ....