Process amount to manufacture

This query is : Resolved

atul (Querist)
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03 May 2013 As per Services Tax Negative list, services tax on process amounting to manufacture is exempt.
Whether there is any provision under services tax/ Excise LAw laws that such processes will be taxable in case such process has been done for a manufacturer(principal) having Area based Exempt unit [Excise exempt unit for 10 years].
There is lot of controversy someone says that it will be taxable.

Pl. give comments.

Thanks
Atul Jain

Ashish Vaish

Ashish Vaish (Expert)
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03 May 2013 No, there is no such provision. Once a process is amounting to manufacture it is not liable to ST. Even otherwise, manufacturing is a subject matter of Central Excise Act 1944 therefore ED can be levied on it and not ST.