Packaging activity service

CESTAT, New Delhi Bench

Som Distilleries (P) Ltd.

v.

Commissioner of Central Excise,Bhopal

JUSTICE S.N. JHA, PRESIDENT

AND A.K. SRIVASTAVA, TECHNICAL MEMBER

STAY ORDER NO. ST/54-55/2008

APPLICATION NO. ST/STAY NOS. 2538 AND 2539 OF 2007

IN APPEAL NOS. ST/653 AND 654 OF 2007

February 06, 2008

Section 65, read with section 86, of the Finance Act, 1994 - Packaging activity services Service tax was demanded from assessee for its packaging and labeling activities - Assessee contended that activities carried out by it were covered by manufacturing process and would be stayed outside ambit of service tax - Revenue contended that activities carried on by assessee could be dissected in a manner that both excise duty as well as service tax had to be paid - Whether instant issue was highly debatable and, therefore, benefit should go in favour of assessee and requirement of pre-deposit, should be dispensed with - Held, yes [Para 3]