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TMI Blog2018 (11) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and bending is not a process of manufacture and no Excise Duty is payable on these activities. Therefore, the services rendered by the appellant by processing the goods manufactured by RINL are exigible to service tax - payment of service tax and interest within the normal period is liable to be confirmed - demand for the extended period is liable to be set aside. Service tax on Cargo Handling Service - Held that:- The cargo handling undertaken by appellant in the form of loading and unloading are a separate service for which separate amount was paid by their client and the transportation service rendered by the appellant was a separate service for which a separate amount was paid by their client. Thus, the cargo handling services ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Cargo Handling Services and accordingly a demand has been raised on these services. Revenue also felt that the processes undertaken by the appellant are chargeable to service tax under Business Auxiliary Services , being in the nature of services associated with the production and manufacture of products by their clients M/s RINL. Show cause notice was issued accordingly and after following due process, the lower authority confirmed the demands raised and imposed penalties. Aggrieved, they preferred an appeal before the first appellate authority who upheld the order and rejected the appeal. 2. Ld. Counsel for the appellant fairly submits that the services rendered by them were in the course of production and manufacture by their cli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessing of goods for, or on behalf of the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods. Explanation - For the removal of doubts, it is hereby declared that for the purposes of this clause, - (a) Commission Agent person who acts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intention in not paying service tax can be attributed on them. The appellants were also not clear whether these activities amount to manufacture and hence not leviable service tax or otherwise. The service tax for the period 2005-06 is, therefore, hit by limitation of time as the notice has been served on them on18.10.2008 and the relevant date by which the half yearly return was required to be filed was 25.10.2006. 4. In respect of the cargo handling services, the appellant asserts that cargo handling was done by them as a part of the transportation of M.S. Coil and any handling done in the course of transportation cannot be levied to service tax under cargo handling services as has been clarified by CBEC in their circular No. 334/1/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing the goods manufactured by RINL are exigible to service tax. However, as far as the intention to evade payment of service tax is concerned, this allegation does not sustain because the department themselves were of the view that these activities amount to manufacture and the assessee entertaining a similar view cannot be held against them. In view of the above, we find that payment of service tax and interest within the normal period is liable to be confirmed and the demand for the extended period is liable to be set aside along with penalty and we do so. 7. As far as the service tax on Cargo Handling Service is concerned, Ld. DR correctly points out that cargo handling undertaken by appellant in the form of loading and unload ..... X X X X Extracts X X X X X X X X Extracts X X X X
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