2010 (6) TMI 341

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..... ing Jeans Buttons with metal inserts and nylon inserts, and processing Needle Threader, on the ground that the processes do not amount to ‘manufacture’ so as to be excluded from the levy of service tax. Commissioner (Appeals) reduced the penalty. Held that- in view of clear language of Section 80 of the Finance Act, 1994, the assessees are correct in contending that once the shelter under Section .....

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..... sing Needle Threader, on the ground that the processes do not amount to "manufacture' so as to be excluded from the levy of service tax. 2. I have heard both sides. Although the assessees had argued that the processes carried out by them amount to "manufacture" and therefore they have not provided any "Business Auxiliary Service" as held by the department, this argument was given up and the ld. .....

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..... n of the assessees that their liability to Service tax arises only w.e.f. 16-6-2005 as the definition of "Business Auxiliary Service" did not include processing of goods at any time prior to 16-6-2005. This is the view expressed by the Tribunal in the case of Gedee Weiler Pvt. Ltd. v. CCE Coimbatore [2010-TIOL-603 = 2010 (18) S.T.R. 417 (Tri-Chennai)]. As regards penalty, I find that in view of cl .....

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