SHARWAN KUMAR Vs. COMMISSIONER OF C. EX., CHANDIGARH

JUDGEMENT

(1.) TWO Appeals filed by the same appellant are being considered in this proceeding because the issues involved in both the appeals are the same. The appellant was undertaking certain jobs within the factory of JCBL Ltd. which was manufacturing bus bodies falling under Chapter 8707 of the Central Excise Tariff. The work done and the piece rate for such jobs are illustrated as under:

(2.) Revenue was of the view that the above activities carried out by the appellant amounts to "production or processing of goods for, or on behalf of, the client" as specified in clause (v) of Section 65(19) of Finance Act, 1994 defining "Business Auxiliary Service" and service tax was payable which was not paid. So Revenue issued one Show Cause Notice for demanding tax amount not paid for the period 1 -6 -2005 to 31 -12 -2007 and another for the period Jan 2008 to Sep 2008. After adjudication, demands for tax amounts of Rs. 23,39,109/ - and Rs. 94,180/ - are confirmed along with interest and penalties.

(3.) THE contention of the appellant is that the appellant was doing certain activities in the factory of a manufacturer of excisable goods and these activities are incidental and ancillary to manufacture and hence covered by the definition of manufacture in Section 2(f) of Central Excise Act, 1944. Further such processes are specifically defined to be "manufacture" in section Note 6 of Section XVII of the Central Excise Tariff which reads as under: