Customs Excise and Service Tax Appellate Tribunal

The Supreme Court held that "manufacture" includes a series of integrally connected processes. For exemption eligibility, the cumulative effect of all processes—even across different units—must be considered. If any integral process uses power, the entire manufacture is deemed to be with power, disentitling the final product from exemption. Facts Of The Case: The appellant-department received intelligence that Bhagyalaxmi Processor Industry (Unit 1) and Famous Textile Packers (Unit 2) were processing cotton fabrics with power without following excise procedures. A search on 21.01.2003 revealed both units operated within the same compound and possessed industrial electricity connections with machinery like mercerizing, bleaching, squeezing, and stentering machines operated by electric...

The Supreme Court upheld the service tax levy on services provided by the Airports Authority of India for handling export cargo. It ruled that while such handling is excluded from the definition of "cargo handling service," it squarely falls under the broader, specific taxable service category of "Airport Services" as defined under Section 65(105)(zzm) of the Finance Act, 1994. Facts Of The Case: The Airports Authority of India (AAI), a statutory body under the Ministry of Civil Aviation, was engaged in handling export cargo at various airports. This involved a range of activities such as unloading, carting, X-ray screening, and export packing from the point of accepting the cargo until it was loaded onto an aircraft. The tax authorities confirmed a service tax liability on these s...

Tag: Customs Excise and Service Tax Appellate Tribunal

Supreme Court: Power Used in Any Part of an Integrated Process Disqualifies Exemption from Excise Duty

Supreme Court Clarifies: No Service Tax Exemption for Handling Export Cargo at Airports