No Service Tax on Packing of Bulk pack into Retail Packs as Job Work, amounts to Manufacture: CESTAT deletes Demand, Penalty and Interest

In a significant ruling, the CESTAT Kolkata bench held that packing bulk goods into retail packs qualifies as “manufacture” under Section 2(f) of the Central Excise Act and relevant Chapter Notes, placing it outside the ambit of service tax as per Section 66D(f) of the Finance Act. The tribunal set aside a hefty ₹4.25 crore service tax demand on Emami Limited and ₹19.14 lakh on a contractor, along with associated penalties, finding that evidence such as statements were retracted and unauthorised under Section 9D. It emphasized that contractors retained control over labour and quality, reaffirming that genuine job-work is distinct from manpower supply. (Word count: ~124) :contentReference[oaicite:0]{index=0}