TaxTMI 
TaxTMI 
2025 (7) TMI 281
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....ess of chilling, cut open of bulk packing, pasteurisation, standardization, and packing into pouches for retail sale amounts to 'manufacture' or is in the nature of providing 'Business Auxiliary Service' "BAS" taxable under Section (65)(105)(zzb) read with section 65(19) of the Finance Act, 1994 Act, 1994. 2. M/s. Shri Shri Vardhman Milk Dairy Private Limited The Appellant subjected to the above processes on behalf of M/s Reliance Dairy Foods Limited RDFL under an agreement. Show cause notice dated October 24, 2013 was issued to the appellant considering that the activities carried out by the appellant were in the nature of providing "BAS" and hence demand of service tax amounting to Rs.43,64,774/- was raised, invoking the extended period ....
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....hat the process cannot be bifurcated to say that part of it amounts to manufacture rather the process has to be taken in its entirety as a whole. The learned counsel has also challenged that the show cause notice is time barred and there is no reason for invoking the extended period of limitation. 5. Shri Anand Narayan, learned Authorised Representative for the Revenue has relied on the findings of the Commissioner (Appeals) and referred to the decision of this Tribunal in the case of M/s Jai Durge Ice Factory Final Order No. 50409/2025 dated 17.02.2025. 6. The processes on the raw milk of chilling and then subjecting the milk to the process of separation, standardisation, and pasteurisation and then packing it into pouches makes the milk....
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....r mind that pasteurization, packing from bulk pack to branded consumer packs undertaken by the appellant clearly amounts to manufacture as per Note 6 of Chapter 4 of the Central Excise Tariff Act, 1985. As a consequence we are of opinion that they get covered under the scope of definition "manufacture" as provided under Section 2 (f) of Central Excise Act, 1944. We also find that the provisions of law are absolutely unambiguous on this aspect and conclude that since the activity of manufacture, as discussed above, is excluded from the scope of classification and levy of service tax under business auxiliary service, we are of view that the activity undertaken by the appellant are not leviable to service tax under business auxiliary service a....
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.... 5[but does not include any activity that amounts to "manufacture" of excisable goods" 8. As can be seen from the provisions of Section 65(19) that the "BAS" does not include any activity that amounts to manufacture of excisable goods. Since the activity of chilling, separation, pasteurization, standardization, and packing in pouches have been held to be manufacture, the same is excluded from the purview of service under the category of "BAS". The terms of the Section are clear and unambiguous. There is only one interpretation which can be ascertained from the contents of the Section, i.e. the activity if it amounts to 'manufacture' would not be covered under the definition of "BAS". The decision of this Tribunal in the case of Shri Vrinda....
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....in dispute is October 1, 2011 to March, 2013 which falls both in the pre-negative and post-negative era. The provisions during the pre-negative era has been discussed above. With reference to the post-negative period, provisions of Section 66D provides for the negative list and clause (f) during the relevant period puts the 'manufacturing process' outside the net of 'service', in the following terms:- "(f) services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption;" 11. In view of the provisions of law including the Chapter Note and the interpretation placed by the various decisions, we are of the view that the activities carried out by the appellant in re....