DAURALA SUGAR WORKS Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) The applicant filed this application for waiver of pre -deposit of amount of Service Tax and penalties. The demand was confirmed after considering the applicant as provider of business auxiliary service that includes production or processing of goods for, or on behalf of the client.

(3.) THE contention of the applicant is that no doubt production or processing of goods on behalf of clients covered under business auxiliary service. However, as per the definition any activity with amounts to manufacture within the meaning of Section 2(f) of Central Excise Act does not come under the scope of business auxiliary service. The applicant relied upon the decision of Hon'ble Madras High court in the case of CCE v. Vinbros and Company reported in to submit that blending and bottling of Indian Made Foreign Liquor amounts to manufacture as the end product is commercially different from rectified spirit which is not fit for human consumption and the changes made to original product results in a new different commodity which is recognised as to in the trade.