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TMI Blog2020 (2) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... 44? - HELD THAT:- It is not in dispute that the processes undertaken by the appellant on the marine products are intended to render such products marketable to consumers. Therefore the appellant s activity falls under the definition of manufacture and not as taxable service falling under BAS. Both the authorities have not properly appreciated the processes explained by the appellant vis- -vis the Chapter Note 3 of Chapter 16 CETA, 1985. The definition of BAS is also examined and it is found that the activities carried out by the appellant do not fall under the BAS as defined under Section 65(19) of the Finance Act - Further as far as demand of service tax on renting of immovable property is concerned, we find that if the other activity carr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and disposal. For the sake of convenience, the facts of appeal No.ST/493/2009 are taken. 2. Briefly the facts of the present case are that the appellant is a public limited company having its registered office at Trissur and they are engaged in processing and packing of marine products for merchant exporters. They entered into a contract with M/s. SLS Exports Pvt. Ltd., Cochin, on 01/07/2005. On 21/12/2005, the Central Excise officers from Calicut Commissionerate issued a summons for certain documents and for explanation of the activities undertaken by the appellant. on 06/01/2006, all required documents and copy of agreement and ledgers showing receipts payments etc. were furnished and the entire manufacturing process were also explaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lea that they are covered under the Central Excise just because service tax has been imposed on them. He further submitted that in the subsequent show-cause notice dt. 20/04/2009 which is subject matter of appeal No.ST/20383/2016. The original authority after considering the detailed submissions and the processes carried out by the appellant dropped the demand. Aggrieved by the said order, the Department filed appeal before the Commissioner(Appeals) and the Commissioner(Appeals) set aside the order of Additional Commissioner and confirmed the demand. Learned counsel further submitted that the Department issued periodical show-cause notices and 7 show-cause notices were issued and the Jt. Commissioner, Calicut vide Order-in-Original dt. 31.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur [1998(97) ELT 310 (Tri.)] iii. Ponds (India) Ltd. Vs. CCE [1993(63) ELT 3 (Mad.)] iv. CCE, Vadodara Vs. Pioneer Scientific Glass Works [2006(197) ELT 308 (SC)] 5. On the other hand, the learned AR defended the impugned order. 6.1. After considering the submissions of both the sides and perusal of the material on record, we find that the only issue to be decided in the present set of appeals is whether the activity of the appellant can be termed as taxable service under the provisions of Finance Act, 1994 as Business Auxiliary Service or the activity can be called as a manufacture as defined under the provisions of Central Excise Act, 1944. Further we find that it is not in dispute that the appellant is processing marine products on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocessing material is then located in contact plate freezer and frozen for 90 minutes. This is the end product. This product is packed in corrugated cartons, strapped and stored in the frozen storage maintaining at minus 18 degree Celsius. When sufficient cargo is ready, this will be shipped to the overseas buyers by M/s. SLS Exports. So, after the various stages of processing of the raw materials received a commercially distinct product is obtained with a brand image and acceptable to any overseas buyers. Thus, the raw materials received are converted to a value added product, and manufacturing activities are taken place in the course of its exports. We would also point out that Ministry of Good Processing Industries, Govt. of India, has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CETA, 1985. Further we find that the activity of the appellant falls under Chapter 16 of the CETA, 1985 by virtue of Chapter Note 3 of the said Chapter 16 which is extracted below:- In relation to the products of this Chapter, labeling or relabeling of containers or repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to 'manufacture'. 6.2. It is not in dispute that the processes undertaken by the appellant on the marine products are intended to render such products marketable to consumers. Therefore the appellant's activity falls under the definition of manufacture and not as taxable service falling under BAS. Both the authorities have not pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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