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TMI Blog2014 (12) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ite as result of which there are lesser number of gaps at every 2Km instead of at every 100 Mtrs resulting in smooth movement of train on railway tracks. In fact, the process undertaken by the Appellant is part of the process of laying down of tracks and make them fit for traffic movement as before undertaking the thermite welding process, the rails have to be precisely aligned. In our view, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ite mixture, which is used for thermite welding consists of iron oxide (ferric oxide) and metal powder like aluminum powder, magnesium powder zinc powder etc. In thermite welding process using the mixture of iron oxide and aluminum powder as fuel, the aluminum reduces the iron oxide and iron is produced with a large amount of heat as the reaction is exothermic. The melted iron produced fills the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand to the extent of ₹ 26,09,242/- and dropped the remaining demand of ₹ 24,29,051/- on the ground that this service tax has been demanded on the cost of materials sold. Besides this he also demanded interest on the service tax demand confirmed and also imposed penalty of equal amount on the appellant under Section 78 of Finance Act, 1994. Against this order of the Commissioner, this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process undertaken by the appellant, the pieces of rail with longer length emerge and hence, the process undertaken by the appellant is production of goods not amounting to manufacture and would attract service tax under Section 65(105)(zzb) read with Section 65(19) ibid. 6. We have considered the submissions from both the sides and perused the records. 7. Undisputedly, the appellant underta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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