2020 (2) TMI 1449

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..... activity of crushing, pulverising, converting and packing of spices into powder form amount to manufacture or not? (b) If not, whether service tax is payable under the category of Business Auxiliary Services or not? The Registry is directed to place the matter before the Hon ble President to examine the issue for constituting Larger Bench to decide the issue.
Shri Ashok Jindal, Member (J) and P. Venkata Subba Rao, Member (T) Shri G. Prahlad and Vipin Kumar, Advocates, for the Appellant. Shri L.V. Rao, AR, for the Respondent. ORDER Both the appeals are having a common issue. Therefore, they are taken up together. 2. The facts of the case are that the appellant is engaged in the activity of conversion of various spices into powd .....

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..... 020-C.E., dated 16-3-2000 is not applicable to the facts of the case as the said circular deals with issue of classification of turmeric powder under Chapter 33 and does not deal with the issue of determining whether conversion of spices into powder amounts to manufacture as a new distinct products emerges. It is also prayed that extended period of limitation is not invokable. The Learned Counsel also relied on the decision of the Learned Commissioner (Appeals) in their own case for subsequent period wherein the proceedings against the appellant has been dropped holding that activity undertaken by the appellant amounts to manufacture. 4. On the contrary, the Learned A.R. relied on the CBEC Circular dated 16-3-2000 to show that there i .....

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..... ard the parties, considered the submissions. 7. We find that in appellant's own case for subsequent period, the Learned Commissioner (Appeals) has gone into depth of the case and considered the order passed by the Tribunal in the case of Jayakrishna Flour Mills Pvt. Ltd. v. CCE, Madurai [2015 (37) S.T.R. 1079 (Tri. - Chen.)]. The said decision is based on the CBEC Circular No. 11/01/2012-CX.1, dated 9-7-2013 and thereafter this Tribunal came to the conclusion that the process, in question, would amount to manufacture and no service tax is leviable. Further, this Tribunal has held that crushing of chilli to make chilli powder does not amount to manufacture in the case of Sara Spices (supra), relying on the CEBC Circular dated 16-3-2000 .....

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