Service tax cannot be levied on Job work that amounts to manufacture – CESTAT

Brief Facts of the case The appellants manufacture excisable goods falling under Chapter 29 of Central Excise Tariff Act, 1985. On scrutiny of the records, departmental officers noticed that during the period 10/09/2004 to 28/02/2005 appellant had received some amount towards job-work charges and processing charges. It revealed that the appellant carried out job-work on the goods supplied by the client and the same were returned back to the client after processing, without payment of any duty being job-work carried out by the appellant for which appellant received an amount as a consideration....