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TMI Blog2014 (8) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... tegory of "Business Auxiliary Service" for the period April 2007 to March 2012. We find that on identical issue, the Tribunal in the case of M/s. Naga Ltd. Vs CCE Madurai vide Stay Order No.42592/2013 dt. 8.10.2013 granted unconditional stay on the basis of Chief Commissioner's letter and the clarification of the Board on the issue for decision. The relevant portion of the stay order dt. 8.10.2013 is reproduced below:- "4. After hearing both sides and on perusal of records, we find that the levy of service tax on wheat product had drawn the attention of the CBEC by the Chief Commissioner of Customs & Central Excise, Coimbatore Zone and the relevant portion of the said letter dated 06.03.2012 is reproduced below:- &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an activity not liable to Service Tax under "Business Auxiliary Service" in view of the following reasons: a) The various goods viz. maida, sooji, atta and bran produced by the roller flour mills are covered under Chapter 11 and the raw-material "Wheat" is classifiable under Chapter 10 of CETA, 1985. As the products "wheat" and "wheat flour" fall under different Chapters, the activity undertaken by flour mills amount to manufacture and gets covered under the exclusion clause of the definition of Clause 19 of Section 65 of the Finance Act, 1994. In this regard the judgement of Hon'ble High Court of Madras in the case of United India Roller Flour Mills Ltd vs Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product is not changed by certain client processing then such processes undertaken on or behalf of the client should be considered as covered by the expression "in relation to agriculture appearing in the Notification No.14/2004. In the instant case, by grinding of wheat, the physical character of wheat is changed into various forms and the essential character of the agricultural product is not at all changed and therefore it is to be excluded from levy of Service Tax under BAS in terms of Board's Circular No. 143/12/2011- S.T. dated 26.5.2011, if it is not treated as a manufactured product. 5. We have also noticed that Director (CX.1) of Ministry of Finance, Department of Revenue vide letter dated 18.07.2013 observ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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