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TMI Blog2023 (6) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... nts which is covered under taxable entry of Business Auxiliary Service - From the plain reading of the notification it is clear that not only the raw material should be processed by the job-worker but even some finished goods are also to be processed for the eligibility of exemption notification - In the present case, the packed goods were supplied to the appellant for carrying out process of sterilization therefore the packed goods before sterilization are semi-finished goods. Therefore the contention of the Revenue that only raw material should be processed to be eligible for exemption is incorrect as semi-finished goods are also allowed to be processed for making eligible for the above notification. The term production of goods has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 19-6-2023 - HON BLE MR. RAMESH NAIR, MEMBER (JUDICIAL) And HON BLE MR. C.L. MAHAR, MEMBER (TECHNICAL) MG Yagnik, Advocate for the Appellant Shri G. Kirupanandan, Assistant Commissioner (AR) (AR) for the Respondent ORDER RAMESH NAIR : Brief facts of the case are that appellant are engaged in the process of sterilizing goods of their client on job-work basis and for which the job charges are collected. The case of the department is that the said activity falls under the category of Business Auxiliary Service under sub-head production of processing goods on behalf of client accordingly, the same is taxable. The department also denied exemption under Notification No.8/2005 on the ground that, firstly th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out the activity of processing of goods on behalf of the clients which is covered under taxable entry of Business Auxiliary Service. For the processing activity there is an exemption notification 8/2005-ST. Both the lower authorities have denied exemption on the ground that firstly, the appellant have not received raw material for processing and secondly, after processing the goods were not used in the manufacture by the client. To understand whether the contention of the Revenue is correct or otherwise it is necessary to read the notification carefully which is reproduced below:- Job work Service tax exemption to goods produced on behalf of client In exercise of the powers conferred by sub-section (1) of section 93 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification it is clear that not only the raw material should be processed by the job-worker but even some finished goods are also to be processed for the eligibility of exemption notification. In the present case, the packed goods were supplied to the appellant for carrying out process of sterilization therefore the packed goods before sterilization are semi-finished goods. Therefore the contention of the Revenue that only raw material should be processed to be eligible for exemption is incorrect as semi-finished goods are also allowed to be processed for making eligible for the above notification. 5. As regards the contention of the Revenue that after processing the same should be used by the principal client for further manufacturing, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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