9911796707
TMI Blog2024 (5) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Pioneer Engineering Industries [ 2018 (6) TMI 719 - CESTAT CHENNAI] had considered the very same issue and held that the activity undertaken by the assessee in the nature of cutting, punching, drilling, heat treatment on steel plates so as to send the products to M/s. BHEL would amount to manufacture. The Tribunal had relied upon the decision of the Hon ble Supreme Court in the case of Orissa Bridge Construction Corpn. Ltd. Vs. Commissioner of Central Excise, Bhubaneswar [ 2008 (8) TMI 585 - SUPREME COURT] to hold that such activity amounts to manufacture. Thus, we are of the considered opinion that the activity amounts to manufacture. The Commissioner (Appeals) for the subsequent period has set aside the demand of service tax obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erations like shearing, pressing, marking, drilling, punching, welding, gas cutting, grinding, etc. The raw materials received from their suppliers are converted into various boiler components. Such boiler components are straight away used in further assembly by their customer to make boilers. The assemblies are sent by their suppliers to M/s. Bharath Heavy Electricals Limited (BHEL) for further assembly. The entire transactions are covered by Notification No. 214/86-CE and the appellant is a job worker. The activity amounts to manufacture and therefore cannot be taxed under BAS. As the transaction is covered under Notification No. 214/86-CE, the appellants are not liable to pay service tax. As per the Notification No. 214/86-CE, the job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy of excise duty. In the present case, the appellant has not paid excise duty on the goods cleared and therefore the exemption of service tax under Notification No. 08/2005-ST is not available. The findings in the impugned order was reiterated. 4. Heard both sides. 5. The issue to be decided is whether the appellant is liable to pay service tax on the labour charges (job work charges) collected by them for undertaking the activity of cutting, shearing, welding etc., on the goods. The Ld. Counsel has adverted to the pictures with regard to the items on which they have undertaken the said works. For better appreciation, a few of them are reproduced as under : - 6. It is argued by the Ld. Counsel that the identity of the goods completely chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the activity undertaken by the assessee in the nature of cutting, punching, drilling, heat treatment on steel plates so as to send the products to M/s. BHEL would amount to manufacture. The Tribunal had relied upon the decision of the Hon ble Supreme Court in the case of Orissa Bridge Construction Corpn. Ltd. Vs. Commissioner of Central Excise, Bhubaneswar, [2011 (264) ELT 14 (SC)] to hold that such activity amounts to manufacture. Following the decision of the Tribunal in the case of Pioneer Engineering Industries (supra), we are of the considered opinion that the activity amounts to manufacture. The Commissioner (Appeals) for the subsequent period has set aside the demand of service tax observing that the activity amounts to manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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