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TMI Blog2019 (6) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... rendering the raw milk as marketable product for the ultimate consumption of general public and as such, would get covered by the said Chapter note conferring a deeming status. The milk in question is known differently in the market and amongst the people, who use it. As such, the final product i.e. toned milk being separate and distinct from the raw milk has to be held as a manufactured item. If that be so, the definition of business auxiliary services would not be satisfied inasmuch as the same specifically excludes the processes which amount to manufacture - the appellant is not undertaking the chilling processes only, but there are further processes of pasteurization, homogenization and standardization etc., thus undertaking the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs were initiated against the appellant by way of issuance of two show cause notices dated 29.09.2014, for the period November 2010 to June 2014 and show cause notice dated 12.10.2015 for the period July 2014 to March 2015. The said two show cause notices culminated into the present impugned order passed by the Commissioner of Central Excise, Noida vide which he confirmed the Service Tax of ₹ 8,03,72,092/-(Rupees Eight Crore Three Lakh Seventy Two Thousand and Ninety Two only), along with confirmation of interest and imposition of penalties of identical amount in the first show cause notice in terms of section 78. Further, penalties were imposed under section 76 and 77 also under both the show cause notices. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ample as per the agreement itself. The said sample is merely stored by them for quality testing and subsequently destroyed by releasing the same in the water. He also submits that M/s.Mother Dairy has entered into identical agreements with other job-workers also and no proceedings stand initiated against any of the job-worker. He also draws our attention to the various decisions of the Tribunal wherein the identical activities undertaken by the job-workers were held as not falling under the category of business auxiliary services. The demand is also assailed on the point of limitation. 4. Learned A.R. appearing on behalf of the Revenue reiterates the reasoning of the adjudicating authority. 5. After carefully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of a deeming clause holding the activities as amounting to manufacture, in case the same are clearly not covered by the definition of manufacture appearing in section 2(f) of the Central Excise Act. Admittedly the processes undertaken by the appellant are for the purpose of rendering the raw milk as marketable product for the ultimate consumption of general public and as such, would get covered by the said Chapter note conferring a deeming status. Apart from that we also find that tariff heading 0401 20 00 describes the entry as milk of a fat content by weight, exceeding 1%, but not exceeding 6%. The product which ultimately is manufactured by the appellant contains fat contents of 3.5% in terms of the agreements be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld as an activity not covered under business auxiliary services so as to attract Service Tax. To the same effect is the Tribunal s decision in the case of Vinayak Industries v. Commissioner of C.Ex. S.T., Jaipur-I [2016 (45) S.T.R. 191 (Tri.-Del.)] and Sharma Ice Factory v. Commissioner of Central Excise, Jaipur-I [2015 (37) S.T.R. 660 (Tri.-Del.)]. It stands held in the said decisions that in terms of chapter note 6 of chapter 4 chilling of milk is a treatment which renders milk marketable and as such chilling of milk amounts to manufacture. In the present case the appellant is not undertaking the chilling processes only, but there are further processes of pasteurization, homogenization and standardization etc., thus undertaking the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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