TaxTMI 
TaxTMI 
2025 (7) TMI 3
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....considered such job work activity as 'manufacture' and for that purpose, got themselves registered with the Central Excise Department. The appellants have also registered with the Service Tax Department for provision of taxable services under the category of 'Business Auxiliary Services' (BAS). During the disputed period, the appellants received the HR coil from the principal manufacturers for the purpose of 'pickling and oiling'. The said goods were received by the appellants under the cover of job work challans prescribed under Rule 4A of the CENVAT Credit Rules, 2004. On completion of the job work activity, the appellants had sent back the goods on which job work was undertaken, to the principal manufacturer(s), which were used by them i....
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....ifically provided that carrying out such activities would amount to 'manufacture', and thus, no service tax demand can be made on such job work activities under the taxable category of BAS/service. 2.2 Learned Advocate further submitted that even assuming that service tax liability be fastened, for the disputed period from 17.03.2012 to March, 2015, but the appellants were not liable to pay service tax in terms of Notification No. 8/2005-S.T. dated 01.03.2005, for the reason that payment of service tax was specifically exempted for carrying out the activities of production/ manufacture of goods and the conditions provided under the said notification were also duly satisfied by the appellants. Further, he also submitted that carrying out th....
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....case records. 5. The period of dispute involved in the present appeal is from 2007- 2008 to 2014-2015. The learned adjudicating authority has confirmed the adjudged demands on the appellants, holding that they had provided the taxable service, which was liable for payment of service tax under the taxable category of 'BAS', defined under Section 65(19) of the Finance Act, 1994 (upto 30.06.2012) and as 'service', defined under Section 65B(44) ibid (w.e.f. 01.07.2012). The statutory provision with regard to both the category of taxable services are extracted herein below: "Section 65(19)... "business auxiliary service" means any service in relation to- (i) promotion or marketing or sale of goods produced or provided by or belonging to....
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....a transaction in money or actionable claim; (b) a provision of service by an employee to the employer in the course of or in relation to his employment; (c) fees taken in any Court or tribunal established under any law for the time being in force...." 6. On reading of the above definition of BAS, it transpires that in sub-clause (v) the activities of 'production or processing of goods for the client' is considered as a taxable service, leviable to service tax thereon. Thus, the activities carried out by the appellants as a job worker for the principal manufacturer(s) for the period from 2007-2008 to 30.06.2012, should be termed as provision of service under the category of BAS. However, in context with the sub-clause (v) in the defi....
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....arged. On careful reading of the notification (supra) vis-à-vis the certificates furnished by the principal manufacturers, we find that the conditions laid down in the notification have been duly complied with inasmuch as the raw materials received in the factory by the principal manufacturers were duty paid on which CENVAT credit was availed, and thereafter the same were sent to the appellants for carrying out the job work, and the resultant intermediate products were supplied back to the principal manufacturer, for further use in the manufacture of ultimate excisable final products, on which appropriate duty was paid as per the Tariff Act of 1985. Though the notification dated 01.03.2005 was rescinded vide Notification No. 34/2004-....