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TMI Blog2023 (2) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1994. HELD THAT:- From the plain reading of the definition of Management, Maintenance Repair Service the main condition is that the Management, Maintenance Repair Service of the plant should belong to the service recipient and not to the service provider. In the present case the order impugned has held the appellant as service provider and Gharda Chemicals Ltd as service recipient. It is also not disputed that it is the service recipient M/s GCL is paying for the use of manufacturing facilities of the appellant for manufacture of the excisable goods of M/s Gharda chemicals. In this fact the appellant using their own plant machinery equipment that too for production of excisable goods on behalf of M/s Gharda chemical Ltd. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant M/s. Gujarat Insecticides Ltd. (GIL) are holding Central Excise Registration and are engaged in the manufacture of excisable goods viz. insecticides, pesticides, weedicides falling under chapter 28,29 38 of the first schedule of Central Excise Tariff Act, 1985. They are also holding certificate of registration form ST-2 for services (i) Goods Transport Operator and (ii) Business Auxiliary Services under section 69 of Finance Act, 1994. During the course of audit of appellant it was noticed by audit party that they had provided their plant A, B D for exclusive use for the manufacture of goods on the input and packing material supplied by M/s. Gharda Chemicals Ltd (GCL) had recovered an amount of Rs 10,91,88,495/- during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cking materials supplied free of charge by GCL. The appellant have used their specified plant, equipment, machinery, labour, Supervisors, water, electricity and certain consumable and stores in small quantum for production of excisable goods for and on behalf of GCL. It is his submission that the said activity was undertaken under the provision of Rule 4 (5) (a) of Cenvat Credit Rules, 2004. Accordingly, the activity clearly of manufacture cannot be construed as service for charging service tax. Even if by stretch of imagination the activity if classified the same will fall under Business Auxiliary Service under sub head of Production or Processing on behalf of the client . In such case, demand under Management, Maintenance or Repair servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puter software; (b) properties includes information technology software From the plain reading of the above definition of Management, Maintenance Repair Service the main condition is that the Management, Maintenance Repair Service of the plant should belong to the service recipient and not to the service provider. In the present case the order impugned has held the appellant as service provider and Gharda Chemicals Ltd as service recipient. It is also not disputed that it is the service recipient M/s GCL is paying for the use of manufacturing facilities of the appellant for manufacture of the excisable goods of M/s Gharda chemicals. In this fact the appellant using their own plant machinery equipment that too for productio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the demand was raised under Management, Maintenance Repair Service and as per our opinion it is not the correct classification the demand is not sustainable on this ground itself. The adjudicating authority put heavy emphasis on the fact that the entire plant was used exclusively for production of goods of GCL. Therefore, the service is classified under Management, Maintenance Repair Service. As we already observed above that since the plant machinery equipment used for the purpose of production belongs to the appellant, the service is not classified under Management, Maintenance Repair Service. Further, the activities carried out by the appellant are undoubtedly production of goods on job work basis on behalf of GCL. This posit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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