JAYANTHI RUBBERS Vs. COMMISSIONER OF C. EX., COCHIN

JUDGEMENT

(1.) THE appellant is required to pre -deposit an amount of Service Tax of Rs. 3,83,162/ -. They are job workers for carrying on the process of semi -finished goods received from the EOU unit. The Revenue has proceeded to recover Service Tax under the category of Business Auxiliary Service. The appellants have contested the issue on the ground that they are carrying on the activity of manufacture which attracts the Central Excise Act and the Service Tax Act (sic) is not attracted. However, their plea has been rejected.

(2.) WE have carefully considered the submissions made by both sides. Prima facie, the facts of the appellant carrying on the process of Rubber packing and rubber edging of polypropylene carpets and bringing the goods into existence is an activity of manufacture cannot be denied in the present facts of the case. Prima facie, their plea that Service Tax is not attracted is required to be accepted. The stay application is allowed granting waiver of pre -deposit and staying its recovery till the disposal of the appeal.