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TMI Blog2013 (12) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... d re-rubberisation comprises removing the old rubber from spindle and replacing it with the fresh rubber compound coating. Intelligence was received by officers of DGCEI that the appellants did not discharge the service tax liability on re-rubberisation of rollers provided by them to various customers/clients. The investigations were taken by the officers of DGCEI. During the course of investigation various records/documents maintained by the appellants were examined by the officers of DGECI and statements of various employees/ Directors of the appellants were recorded to ascertain the facts whether re-rubberisation under taken by the appellants on behalf of their customers was classifiable under the category of 'Management, Maintenance or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , And includes services as a commission agent, but does not include any information technology service and any activity that amounts to "manufacture" within the meaning of clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944). [Explanation.- for the removal of doubts, it is hereby declared that for the purposes of this clause,- (a) "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt acting on behalf of another person - (i) Deals with goods or services or documents of title to such goods or services; or &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with interest and also proposing the penalties on the appellants. The Show Cause Notice was adjudicated by the Commissioner vide impugned order who confirmed the service tax amount of Rs.50,85,849/- under the category the Management, Maintenance or Repair Service along with interest and also confirming the equal amount of penalty under Section 78 of the Finance Act, on the appellants and also the penalty of Rs. 1,000/- under Section 77 of the Finance Act. The Appellants challenged the order in the present appeal. 3. The Ld. B.L. Narsimahan Advocate appearing for the appellant submits that the appellants are engaged in the process of re-rubberisation of old and used rollers sent to them by their customers. He submits that re-rubberisation i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jain, DR appearing for the revenue submits that activity under taken by them is re-conditioning of the goods as the appellants by the process of re-rubberisation restore the original function of the rollers which amounts to re-conditioning and as such the activity falls under Management, Maintenance or Repair Service. He submits that the Commissioner in the impugned order has examined in detail the activity under taken by the appellants and came to the conclusion that it clearly falls under Management, Maintenance or Repair Service and not under Business Auxiliary Service. Once the activity is classifiable under Management, Maintenance or Repair Service, the appellants can not claim benefit of Notification 14/2005 in respect of printing, te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the appellants that these activities are covered under clause V of the Business Auxiliary Services as these are processing of goods on behalf of the client. We therefore hold these activities can be classified under Business Auxiliary Service. 7. Contention of Revenue is that re-rubberisation of rollers undertaken by the appellants amounts re-conditioning of used rollers in specified manner and is classifiable under Management, Maintenance or Repair Service. Under Section 65 (64) repair includes re-conditioning restoration or receiving of goods or equipment. In Chamber Dictionary re-conditioning means "to repair and refit to restore to original or sound condition" and this argument of Revenue has also substantial force for classifyin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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