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TMI Blog2014 (8) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... d and fully finished boiler components. According to the Revenue, the process undertaken by the applicant, would not amount to manufacture under Section 2(f) of the Central Excise Act, 1944 and, therefore, they are liable to pay service tax under "Business Auxiliary Service". Adjudicating authority confirmed the demand of tax of Rs. 1,23,64,273/- along with interest and penalty for the period Oct.'06 to Sept.'11. 2. Heard both sides and perused the records. 3. After hearing both sides and on perusal of the records, we find that M/s. BHEL filed a declaration under Notification No.214/86-CE, dated 01.03.1986 as amended from time to time, to the Deputy Commissioner of Central Excise, Division - Tiruchirapalli and submitted an underta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue submits that the applicant themselves have not filed the declaration under Notification No.214/86. The declaration is not covering the entire period of dispute. He relied upon the decision of the Tribunal in the case of Tansi Engineering Works Vs Commissioner of Central Excise, Coimbatore reported in 1996 (88) E.L.T.407 (Tribunal), upheld by the Supreme Court. It has been held that cutting and punching of holes in angles and channels would not amount to manufacture. On a perusal of the impugned order, we find that the matter was verified by the Superintendent of Central Excise and a report was given by letter dated 03.07.2013 of the Assistant Commissioner of Central Excise. 6. In the Verification Report, it is reported that the raw mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Excise Tariff (Amendment) Act, 2004 (5 of 2005), on which appropriate duty of excise is payable. Explanation . - For the purposes of this notification,- (i) the expression "production of goods" means working upon raw materials or semi-finished goods so as to complete part or whole of production, subject to the condition that such production does not amount to "manufacture" within the meaning of clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944)." 8. The learned Counsel on behalf of the applicant relied upon the decision of the Tribunal in the case of M/s. Munish Forge Pvt. Ltd., Vs Commissioner of Central Excise and Service Tax, Ludhiana reported in - 2014-TIOL-862-CESTAT-D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture. Therefore, the activity of the appellant cannot be treated as Business Auxiliary Service (Production of goods not amounting to manufacture). Moreover, even if, it is treated as service, when it is not denied that the job-work goods were returned by the appellant to the principal manufacturer, the exemption under Notification No.8/2005-ST, dated 01.03.2005 cannot be denied on the ground that there is no evidence that the goods produced were used by the principal manufacturer in or in relation to the manufacture of final products. In view of this, the impugned order is not sustainable. The same is set aside. The appeal as well as stay application are allowed." 9. In the present case, we find that the applicant undertook the job w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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