Liable to charge st

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Golak Panigrahy (Querist)
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07 June 2012 Dear Sir

We are job worker get received raw material from manufacturer for job work / assembly purpose under rule Rule 4 (5) a of CENVAT credit Rule, 2004.

when the goods are being returned after having job worked. are we liable to charge service tax or not.

rajula gurva reddy

rajula gurva reddy (Expert)
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09 June 2012 When the process undertaken by you amounts to manufacture, there is no Service TAx on the job charges. In your case, the inputs are parts and the finished goods are the machine/component after assemble. In case, there is change in the nomenclature in the trade and also in classification, then the process amount to manufacture as new product has emerged with the job work under taken by you.