Machining of casting amount to manufacture, Service tax not payable

Ramaben Parmar Vs C.S.T.-Service Tax (CESTAT Ahmedabad)

As regard the service tax on the job work carried out by the appellant, we find that the appellant have converted the casting by process of machining into a parts which is used by the principal manufacturer in the manufacture of their product. The conversion from rough casting into parts by process of machining clearly falls under the terms ‘Manufacturer’ in terms of Section 2(f) of Central Excise Act, 1944. This is also supported by the decision in the case of ACCU

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