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TMI Blog2024 (6) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Duty. After the Steel Strips are received by the buyers, they have given a contract to the Appellant to come to their factory premises and strap the Steel Rolls/Steel Sheets. For such activity, the Appellant is being paid the service charges. The activity carried out by them is a job work on behalf of the client, wherein the ultimate goods are cleared on payment of Excise Duty by the client. This situation is fully covered by the exemption granted under Notification No. 8/2005 dated 01/03/2005. Extended period of limitation - HELD THAT:- There are also force that the Appellant being manufacturer and recipient of service would have been filing their ER-1 Returns and ST-3 Returns before the authorities. The Appellant also would be carryi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is before the Tribunal. 2. The Learned Advocate appearing on behalf of the Appellant submits that the activity undertaken by them amounts to manufacturing in terms of Section 2(f) of the CEA 1944, since the strapping of steel rolls is important to completing the manufacturing activity of steel sheets. Under Business Auxiliary Service (BAS in short) , in terms of Section 65(19), when production/processing of goods amounting to manufacture takes place, the activity is fully exempted from payment of Service Tax. As an alternate pleading, he submits that when any production/processing of goods is undertaken on behalf of the client based on the raw materials / semi finished goods issued by him which finally results in a manufactured produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the extended period is liable to be set aside on account of limitation also. 5. The Learned AR reiterates the findings of the Adjudicating Authority and submits that the Appellant without any dispute is carrying on the job work at the premises of their buyers. It has been detected that no Service Tax is being paid by the Appellant on the service charges received from their clients. Therefore, he justifies the demand confirmed for the extended period and also justifies that on merits there is no case for the Appellant. 6. Heard both sides and perused the Appeal papers and documents made available to us. 7. Admittedly, the goods in question are Steel Strips which are cleared by the Appellant to various manufacturers of Steel Sheets / Rolls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 986), as amended by the Central Excise Tariff (Amendment) Act, 2004 (5 of 2005), on which appropriate duty of excise is payable . 9. We also find that from the very issue was before the Co-ordinate Bench of Hyderabad in the case of Walzen Strips Pvt. Ltd. Vs. CCE and ST, Visakhapatnam-II. The Hon ble Tribunal has held as under:- 7. We have considered the arguments on both sides and perused the records . It is not in dispute that the appellant manufactures these strips and supplies to their client. It is also not in dispute that the appellant uses these strips in the factory of the client to strap the wire rod mill products manufactured by their client. We find it hard to accept the contention of the appellant that mere strapping of those wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r activity amounts to manufacture which we do not find so. Notification No.8/2005-ST dated 01.03.2005 reads as follows: ......the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of production of goods on behalf of the client referred in sub-clause (v) of clause (19) of section 65 of the said Finance Act, from the whole of service tax leviable thereon under section 66 of the said Finance Act: Provided that the said exemption shall apply only in cases where such goods are produced using raw materials or semi-finished goods supplied by the client and goods so produced are returned back to the said client for use in or in relation to manufacture of any other goods f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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