Will fish processing under Business Auxillary service

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JIGAR

JIGAR (Querist)
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28 March 2010 Has it became online payment complusory to all assessee? (All the indirect & direct tax payment).

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2010 Sir,
M/s X is a sea food exporter and is now doing fish processing work for other exporters. The commissioner of Central Excise considered this activity as Business Auxiliary service and charged service tax and penalty. According to him peeling, cooking, freezing do not amount to manufacture U/s 2(f) of CE Act.
In the appeal top CE it is mentioned that the input is fish and output is ready to eat product .Moreover fresh squid is classified under heading 030741.20 and frozen food is under 0307.49.20.Similarly headings 0301 and 0302 pertains to fresh or live fish .Frozen fish is classified under 0303.Hence process is manufacture and is not liable for service tax.
Please guide me whether any additional point can be given during personal hearing.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 March 2010 For direct tax payment refer CBDT circulars 5/2008 dated 14/07/2008 and 6/2008 dated 18/7/2008 along with notification 34/2008 dated 13/3/2008 and instruction 6/2008 dated 18/6/2008.
For indirect tax payment refer CBEC notification 02/2010 dated 19/01/2010 and notification 04/2010 dated 19/02/2010.