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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 ..... whereas where the production is on behalf of the clients, there would be three parties. Since, services undertaken by the appellants is not covered by the definition, no service tax is attracted - order is set-aside and appeal is allowed - ST/131/2006 - A/1574/2010-WZB/AHD - Dated:- 24-9-2010 - Ms. Archana Wadhwa, Shri B.S.V. Murthy, JJ. REPRESENTED BY : Shri Devan Parikh, Advocate, for the Appellant. Shri J.S. Negi, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. The scope of Business Auxiliary Services as defined under Section 65(19) of the Finance Act, 1994 (the Act) was expanded to include the production of goods on behalf of the clients which does not amount to manufacture under Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the clients to attract levy of service tax, whereas in this case, the production was not on behalf of any client who has client. Therefore the job work undertaken by them is not liable to service tax. Further, he also submitted that no penalty can be imposed in this case since when the officers visited the appellant s premises, the levy was still new and appellants were trying to understand the implications. Nevertheless, they had already applied for registration on28-10-2004and registration certificate was issued on31-10-2004. He submitted that since appellants failed to explain that they were not liable to pay, the amount was paid on31-3-2005. It is his submission that prior to amendment of definition on 16-6-2005, which amended the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cations prescribed by M/s. Maharashtra State Road Development Corporation Ltd. to the main contractors that is M/s. H.C.C. and M/s. L T, the said contractors shall produce certificate from FBE Coating agencies that the quality of powder epoxy material and other components of FBE conform to relevant I.S. Standard. Such certificates shall accompany each lot of coated bars leaving the plant for work site. The contractor may also carry out such tests at plant jointly or separately of coating agency to confirm use of proper quality of coating material. The coated reinforced bars shall be tested at plant site by the contractor, test results shall be jointly signed by authorized representative of contractor and the coating agency. As such, even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness auxiliary service was amended with effect from June, 2005 so as to include the production of goods for the clients , and inasmuch as they are producing the goods for the main contractors, they can be held liable to pay duty only from June, 2005 as the said amendment cannot be made retrospective. As we have already observed that the appellant s activities were covered even under un-amended definition of business auxiliary service , the above argument of the learned Advocate does not carry much weight. 4. In the case of Auto Coats v. CCE (ST),Coimbatore- 2009 (15) S.T.R. 398 (Tri. - Chennai), the clause on behalf of the clients was considered. In that case the appeal was allowed with the following observations :- 3. I have c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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