SERVICE TAX SHALL NOT LIABLE IN RESPECT OF THE PACKAGING OF FERTILIZER
Service tax shall not liable in respect of the packaging of fertilizer
Recently, the Supreme court in the case of Commissioner of Central Excise, Goa. v/s M/s. New Era Handling Agency, (2015) 59 438 (SC), has held that manufacturing is not complete without packaging and therefore, packaging would be essential part of manufacturing and Service tax shall not liable in respect of the packaging of fertilizer under the ambit of packaging services.
In the instant case, assessee was engaged in packaging of fertiliser manufactured by Z. Department demanded service tax thereon. In that case Tribunal held that :
- packaging of fertilizer is a statutory requirement as per Essential Commodity Act, 1955 and Fertiliser (Control) Order, 1985;
- Fertilizer cannot be marketed without same; hence, manufacture is complete only when packaging is done and therefore, packaging would form an integral part of manufacture and excluded from scope of packaging services;
There is no good ground to interfere with judgment of Tribunal. Hence, Appeal was dismissed and case was decided in favour of assessee.
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