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TMI Blog2017 (9) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ralidharan AC ( AR ) ORDER Per: Bench The appellants are engaged in blending of tea and packaging such tea in pouches on behalf of their client. The department was of the view that such activities fall under Business Auxiliary Services and issued Show cause notice for demand of service tax, interest and proposing penalties for the period 10.09.2004 to 28.02.2005. After due process of law, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) upholding demand, interest and penalties under Section 77 and 78 of the Finance Act 1994. 2. On behalf of appellant, the Learned Counsel Shri. M. Karthikeyan submitted that the activities undertaken by appellant are only blending and packaging and it can be construed only as processing and not as production or manufacture of tea. He relied upon the judgment in the case of M/s. Tara Agenci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pra) has discussed the activity and observed as under: All the three stages, namely, production, manufacturing and processing of tea can be enumerated as under. The tea is produced in the tea gardens. This first stage is called production of tea. The second stage is manufacture of tea. In this stage, the tea leaves are plucked from the tea bushes and by mechanical process, tea leaves are converte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t been included in Section 35B(1A) of the Act, therefore, the respondent is not entitled for weighted deduction under Section 35B(1A) of the Act. 5. Following the same we are of the view that the activity of the appellants would not amount to manufacture. Similar view was taken in the case of Sonic Watches Ltd, and above cases relied by the appellant. 6. From the above we hold that the demand i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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