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TMI Blog2012 (8) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Vs CCE(ST),COIMBATORE [2009 (4) TMI 112 - CESTAT, CHENNAI] - Decided in favor of assessee. - ST/702 to 724 of 2011 - - - Dated:- 24-7-2012 - Mr. M.V. Ravindran, Mr. B.S.V. Murthy, JJ. For Appellant : Shri J.C. Patel, Advocate For Respondent : Shri S.G. Dewalwar, AR Per : Mr. M.V. Ravindran; All these stay petitions are directed against the same order in appeal, hence are being taken up for disposal by a common order. 2. All these stay petitions are filed for the waiver of pre-deposit of following amounts :- Name of Party Amounts involved M/s. Marvito Engineering Indus. Service tax of Rs. 79,148/- and penalties under various sections of Finance Act, 1994. Shri Nitin Patel Service tax of Rs. 11,183/- and penalties under various sections of Finance Act, 1994. M/s. Dashmesh Engg Works Service tax of Rs. 32,637/- and penalties under various sections of Finance Act, 1994. M/s. Santram Engineering Co. Service tax of Rs. 11,416/- and penalties under various sections of Finance Act, 1994. Shri Manish R. Patel Service tax of Rs. 17,870/- and penalties under various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese appeals lies in a narrow compass hence we allow the stay petitions for waiver of pre-deposit of amounts involved and take up the appeals themselves for final disposal. 4. The facts in these cases are that the appellants had carried out job work during the period 2004-05 by way of converting the steel plates supplied by M/s. Swiss Glasscoat Equipments Limited into steel shells, agitators, baffles etc. and send the goods back to the said M/s. Swiss Glasscoat Equipments Limited. There is no dispute as to the fact that the appellants were working under job work, under the provisions of Rule 4(5)(A) of the Cenvat Credit Rules, 2004. Revenue authorities were of the view that appellants are covered under the category of services rendered as Business Auxiliary Services. Accordingly, show cause notices were issued and demand of service tax confirmed by the adjudicating authority and upheld by the first appellate authority. 5. Learned counsel would take us through the orders in appeal which are impugned before us. He would submit that adjudicating authority has not considered the definition of Business Auxiliary Services in its true sense, inasmuch as the said definition states tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y services and any activity that amounts to manufacture within the meaning of Clause (f) of section 2 of the Central Excise Act 1944. The specific plea of the learned counsel is that the service which would fall under the category serial (v) hereinabove indicates the production of goods on behalf of the clients. We find that there is no dispute that the appellants were producing goods for the clients and not on behalf of the clients as can be understood from the fact that the appellants are manufacturing goods as job workers. 8. There being no dispute on the facts, we find that the decision in the case of Sonic Watches Limited squarely apply in this case, which we may reproduce hereunder:- 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(f) of the Central Excise 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess 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 clients does not amount to manufacture but would be liable to service tax since Business Auxiliary Services cover the production of goods and process amounts to production. This Tribunal had discussed the term production and the manufacture in detail in that case. Therefore, the contention of the appellant that process does not amount to production cannot be sustained. Further, in the very same decision, this Tribunal had also considered the clause on behalf of client . The relevant Para is reproduced below :- 13.?We find that the coating is being done by the appellants on the bars supplied by M/s. L. T and M/s. H.C.C. who have been awarded the contract for construction of roads, bridges etc. As per the terms and specifications prescribed by M/s. Maharashtra State Road Development Corporation Ltd. to the main contractors that is M/s. H.C.C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 from 16-6-2005 that 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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