Painting of Motor Vehicle parts is a part of manufacturing activity as per Note to Section XVII of CETA, 1985 - ST not leviable under BAS
REVENUE is demanding service tax in respect of the activity of painting of motor vehicle parts.
The Commissioner (A) did not agree with this demand and so the Revenue is before the CESTAT. The year is 2008.
The appeal was heard recently.
The Bench noted that the process undertaken by the respondent is a part of the manufacturing activity of motor vehicles which were cleared on payment of duty.
The CESTAT further observed -
"4. … we find that as per Note to Section XVII of the Central Excise Tariff conversion of an article which is incomplete or unfinished but having the essential character of the complete or finished article, into complete or finished article shall amount to manufacture."
Holding that there is no infirmity in the order of the Commissioner (A), the Revenue appeal was dismissed.