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TMI Blog2019 (3) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The demand under Business Auxiliary Service from the appellant is unsustainable - appeal allowed - decided in favor of appellant. - APPEAL No. ST/1484/2011 - A/30215/2019 - Dated:- 6-2-2019 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri Y. Sreenivasa Reddy, Advocate for the appellant Shri N. Bhanu Kiran, Asst. Commissioner/AR for the Respondent. ORDER Per: Mr. P. Venkata Subba Rao 1. This appeal is filed against Order-in-Appeal No. 1/2011(H-I)ST, dated 27.01.2011. The appellant herein is a manufacturer of PVC pipes and PVC Resins. The appellants supplies these pipes to their clients/farmers and lays the pipes in their fields and joins them as per their require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to service tax under the head Business Auxiliary Service as it amounts to processing of goods and not amounting to manufacture. Hence, this appeal. 3. Ld. Counsel for the appellant submits that the demand is for the period 2003-04 to 2007-08 and the show cause notice was issued on 10.06.2009, invoking the extended period and also proposing imposition of penalties under sections 76, 77 78. He would submit that they are the manufacturers of PVC pipes which they supply to the farmers and if the farmer wants these pipes to be laid in their fields, they render this service as well for a charge and ensure that the pipes are properly interconnected and are leak proof. Mere laying of pipes and joining them cannot, by any stretch of imagi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing of goods for, or on behalf of the client. In this case, the appellant is merely laying the pipes which are already bought by their clients and they are charging a sum for laying them so. These activities are in the nature of installation of pipes. We find it hard to hold that such installation of pipes which includes joining them amounts to processing of the pipes. We do not find that any process has been undertaken on the pipes by simply laying them and joining them. We, therefore, find no merit in the demand, consequently we find that the demand under Business Auxiliary Service from the appellant is unsustainable and need to be set aside and we do so. The demand of service tax along with interest and the penalties are set aside. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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