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TMI Blog2010 (9) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Act, 1944. The appellant is engaged in electroplating (gold plating) of watch straps for various parties such as M/s. Sotex, M/s. HMT Watches Limited, M/s. Timex Watches Limited etc. on job work basis. The premises of the appellants was visited by the officers of Central Excise on29-10-2004, who conducted enquiries with regard to job work and their liability towards service tax. Thereafter, show cause notice was issued and impugned order has been passed confirming service tax demand of Rs. 29,56,340/- and imposition of penalty of Rs. 25,42,941/- under Section 78 of the Act and penalties under Sections 76 and 77 of the Act. 2. Learned advocate on behalf of the appellants submitted that the process undertaken by them cannot be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "production or process of goods for or on behalf of clients", appellants would be not liable to pay service tax since both the processes 'production' and 'process' attract levy of service tax and whether the activity is for or on behalf of the clients, service tax is required to be paid. 3. We have considered the submissions made by both sides. As regards contention of the appellants that process does not amount to production, we find that this is not acceptable in view of the decision of this Tribunal in the case of PSL Corrosion Control Services Limited v. CCE & S, Daman - 2008 (12) S.T.R. 504 (Tri.-Ahmd.). relied upon by the learned DR. In this case the Tribunal held that process of Epoxy coating made on steel bars supplied by clie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant's plea that the expression 'on behalf of their clients' involves third party agreement is accepted, the same is satisfied in the present case. Admittedly, the contractors have to use powder epoxy coated bars in the construction of roads, bridges etc. Instead of doing the coating themselves the same is being done by the appellants on their behalf. As such, it can be safely concluded that the said service stands rendered by the appellants on behalf of L & T, H.C.C, H.P.P. etc. to the State Road Development Corporation Ltd. to whom the said main contractors are rendering service of construction. The adjudicating authority has referred to the definition of the word 'client' as appearing in the Shorter Oxford English Dictionary, 5th Editi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carefully considered the facts of the case and the submissions made by both sides. The appellants undertook the activity of power coating, bending, drilling etc. of components and machinery parts for a consideration. It cannot be said that they had undertaken the various activities on behalf of any other person. They had undertaken the activities themselves for a fee. It was only with effect from16-6-2005that such activities undertaken by a person for another was brought under BAS. As rightly argued by the learned counsel for the appellants, during the material period, which is prior to 16-6-2005, the appellants had engaged in certain activities which could be described as processing of goods for its customers. By virtue of the language of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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