9911796707
TMI Blog2018 (12) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... er to state that it is a manufacturing activity - the activity undertaken by the appellant cannot be considered as a manufacturing activity and the Finance Act will apply and appellant is required to discharge the service tax liability under maintenance or repair services. Time limitation - Held that:- The appellants have kept the department informed about their activity of reprocessing or reconditioning of the said threaded die rolls. Hence, the demand within the period of limitation from the date of the show-cause notice in these two appeals are only sustainable and the demands beyond the period of limitation are unsustainable and liable to be set aside. The demands raised within the limitation from the date of show-cause notice are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efit of small scale exemption. During the period in question as enumerated above, the appellants received worn out threaded die rolls from their customers for rework/remanufacturing/reconditioning. After doing so, appellants removed the same to their customers. The Revenue officers are of the view that the process that is undertaken by the appellants on worn out threaded die rolls is not a manufacturing activity. Hence, the amounts collected as labour charges by the appellants are taxable under the category of maintenance and repair services. Accordingly, show-cause notices were issued to both the appellants for the demand of service tax liability along with interest and for imposition of penalties by invoking extended period. In the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants had informed the Revenue Authorities as to the activity of reconditioning of threaded die rolls. In support of such a claim, he draws our attention to a letter dated 12.06.1998 of Krison Sai Tools and 173 B declaration dated 17.04.1997 of M/s Anok Precession Tools Pvt Ltd. He submits that they had kept the department informed about their activity of job work and sought clarification as to whether the activity would be excisable or otherwise. It is his responsible statement that the Revenue Authorities ....clarification sought by the appellant in respect of Krison Sai tools and in respect of Anok Precision no further action was undertaken after filing of 173 B declaration. 4. Learned A.R. submits that the activity or the process as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA would apply. The contention of the appellants that the activity/process undertaken by them would amount to manufacture is totally misplaced. The activity is undertaken by them on various worned out die rolls received back from their customers which would mean that the process undertaken by them would not result in a new and distinct product in order to state that it is a manufacturing activity. We hold that the activity undertaken by the appellant cannot be considered as a manufacturing activity and the Finance Act will apply and appellant is required to discharge the service tax liability under maintenance or repair services. Another point made by learned counsel about the applicability of Section Note 6 of Section XVI of CETA, will not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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