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TMI Blog2024 (1) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaken by the appellant is a manufacturing activity of the excisable goods. As per the definition of Business Auxiliary Service provided under Section 65 (105) (zzg) of the Finance Act, 1994, the manufacturing activity of excisable goods under Section 2(f) of the Central Excise Act, 1944 is clearly excluded from the definition of Business Auxiliary Service and therefore, the demand of service tax is not sustainable in this case. The impugned order-in-original is without any merits and thus not sustainable. Hence, the impugned order is set-aside - appeal allowed. - HON BLE MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) AND HON BLE MR. C.L. MAHAR, MEMBER (TECHNICAL) For the Appellant : Shri M G Yagnik, Advocate For the Respondent : Shri Rajesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1985 on job work basis to M/s. Gharda Chemicals Limited and they are not providing any service under Management, Maintenance or Repair Service and therefore, the impugned order-in-original is misconceived by considering the manufacturing activity as service under the category of Management, Maintenance or Repair Service. It has further been contended that M/s. Gharda Chemicals Limited are providing all the inputs and packing material free of charge to the appellant and the appellant by utilizing their plant, equipment and machinery, labour, supervisor, water and electricity, manufacturing excisable goods and the same are being supplied back to M/s. Gharda Chemicals Limited. It has further been mentioned that M/s. Gharda Chemicals Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of Business Auxiliary Service provided under Section 65 (105) (zzg) of the Finance Act, 1994, the manufacturing activity of excisable goods under Section 2(f) of the Central Excise Act, 1944 is clearly excluded from the definition of Business Auxiliary Service and therefore, the demand of service tax is not sustainable in this case. It will be relevant to reproduce the operative portion of final order dated 24.03.3034 as below:- 4. On careful consideration of the submissions made by both the sides and perusal of the record, we find that there is only difference of period in the present case and the case which was decided by this Tribunal vide order dated 06.02.2023. Therefore, except for the period, all the facts are same and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 this undisputed fact by any stretch the activities of the appellant cannot be classified under Management, Maintenance Repair Service. Moreover, the activity per se cannot be treated as service itself for the reason that the activities carried out by the appellant is purely of manufacture of excisable goods with the inputs and packaging material supplied by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 position will not alter irrespective of fact that whether the plant, machinery equipment are used exclusively for GCL or partly for GCL or partly for others, therefore, on this basis the activity cannot be classified as Management, Maintenance Repair Service. 4.3 We further find that the activity of the appellant is indeed manufacture of excisable goods in terms of section 2(f) of CEA, 1944. As per the definition of business auxiliary servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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