RUBICON FORMULATIONS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) HEARD learned consultant for the applicants and learned Jt. CDR for the respondent.

(2.) THE authorities below under the impugned order has demanded Service Tax to the tune of Rs. 27,64,285/ - in one matter and to the tune of Rs. 64,74,477/ - in another matter. Equal amount of penalty has also been imposed. The applicants are also held liable to pay interest on the said amount.

(3.) THE lower authority, in the matter in hand, on consideration of the nature of activity carried out by the applicants, has held that, undisputedly, the goods are produced by the applicants and as per the agreement of the applicants with their clients, same were sold to them. The applicants are not entitled to sell those goods in the open market as they are produced for and on behalf of those clients. The goods, so produced, contained alcohol. However, taking into consideration Note 4 of Chapter 30 of the Central Excise Tariff Act, 1985 and provisions of Medicinal & Toilet Preparation Act, 1955, the products manufactured by the applicants are outside the purview of the Central Excise and the activity is not excluded from 'Business Auxiliary Service'.