Services resulting into process amounting to manufacture of goods is exempted from service tax

Babulal Gurjar Vs Commissioner, CGST-Jodhpur (CESTAT Delhi)

CESTAT Delhi held that services by way of carrying out any process amounting to manufacture or production of goods, falls under the negative list and is exempted from the levy of service tax.

Facts-

Acting upon information received from Income Tax Department that during the period 01/04/2014 to 30/09/2016, the appellant had a gross turnover of Rs. 98,86,917/-, accordingly, revenue called for information from the appellant, with regard to his service tax liability during the said period. As no information was submitted by the appellant, it appeared to revenue that it is not possible to ascertain the nature of services provided by the appellant.

Accordingly, show cause notice was issued invoking the extended period of limitation based on the information received from Income Tax Department demanding services including cess. It was further alleged that appellant have wilfully suppressed the facts from the department with intent to evade payment of tax. Further interest and penalty were also proposed. The Assistant Commissioner confirmed the proposed demand and also imposed equal amount of penalty under Section 78 of the Finance Act, 1994.

Please become a Premium member. If you are already a Premium member, login here to access the full content.