Can service tax paid on a invoice be adjusted to excise duty

This query is : Resolved

Sandeep K Pawar (Querist)
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10 September 2014 Sir I carry out two activities under my company..shearing and pickling of steel plates on jobwork basis.i was unaware that picling amounts to manufacture. So we hadnt registered for excise.we generated common invoices for both activities and charged 12.36 service tax as we are regstrd for service tax. Now we have faced an action from excise preventive dept.they have charged us for evasion and are considering all invoices under excise tax.we are only jobworker. What should I do?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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10 September 2014 If process are job work then no need to pay excise duty only service tax will be applicable. In some cases service tax will not be applicable on job work activity also. If process are amounts to manufacture then you need to pay excise duty.