2013 (11) TMI 1343 - AT - Service Tax

Activity manufacture or not - Demand of service tax - Job work Held that - Painting of Motor Vehicle parts is a part of manufacturing activity of Motor Vehicles as per section Note to Section XVII of Central Excise Tariff Act, 1985 conversion of an article which is incomplete or unfinished but having the essential character of the complete or finished article amounts to manufacture Decided against Revenue.

Summary

The Appellate Tribunal CESTAT Mumbai dismissed the appeal filed by Revenue regarding service tax on painting motor vehicle parts used in manufacturing vehicles. The tribunal found the activity to be part of manufacturing, in line with the Central Excise Tariff. Cross objections by the assessee were also disposed of.