9911796707
TMI Blog2014 (12) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGEMENT Per P.K. Das The applicant filed this application for early hearing of the appeal. After hearing both sides, we find that the appeal may be decided at the stage of disposal of early hearing application. Accordingly, after disposing early hearing application, we proceed to decide the appeal. 2. After hearing both sides and on perusal of the records, we find that the appellants are engaged in the process of grinding of wheat into wheat products such as maida, atta, suji and bran for various parties. There is a demand of service tax under the category of Business Auxiliary Service. The dispute relates to whether the process amounts to manufacture. The appellant contended that the conversion of wheat into wheat produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCE Coimbatore has taken a view that the activity of conversion of wheat into flour, maida, suji etc. amounts to manufacture and hence not chargeable to Service Tax. He has also stated that even otherwise service tax was not chargeable in the instant case as the activity was with reference to agriculture produce. A copy of the comments of CCE Coimbatore sent earlier to ST wing is enclosed for ready reference. 3. CX wing is in agreement with views of CCE Coimbatore that conversion of wheat into products like Flour, Maida, Suji etc. amounts to manufacture as a new commodity with distinct name, character and use emerges from the activity of milling of wheat. In fact, Central Excise duty was imposed on Maida in 1971 which was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal by M/s. Naga Ltd. against the Commissioners O/O No.4/2011 dated 25.11.11, Hon ble CESTAT, SZB, Chennai after taking cognizance of the Boards clarification on this issue has granted stay vide Misc. Order No. 42592/2013 dated 5.11.13. Another O-in-O passed by the Commissioner vide O-in-O No.52/2012 ST dated 11.11.12 in the case of M/s. Rajaram Flour Mills, confirming the demand of Service Tax of ₹ 71,28,671/- with equal penalty and interest is also pending with the Honble CESTAT, SZB, Chennai and a stay order vie Misc. Order No. 40899/2014 dated 12.6.14 has been granted. 5. On an identical issue pertaining to M/s. Naga Ltd. Dindigul, Additional Commissioner of Central Excise, Madurai confirmed the demand of ₹ 48,58, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
