Vat is applicable on Job work?

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sekhar (Querist)
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09 June 2010 Dear Sir,

we were doing job work on steel structures we were taking input credit in central excise and paying excise on despatch of material, now is there any VAT applicable on excise invoice? we were writing invoice only excise and edcess, hsecess in VAT column we were showing blank, after all of the work is complete we were doing fabrication bill for the sent material. For Ex: we had received a order for 100mt material. Job work charges for the above is Rs.10000/- we were paying excise landing price + Job work charges. After completing the work were issuing fabrication bill for 100mt x 10,000 = 10,00,000/- this amount was shown in VAT return as exempted sales. We were not charging any VAT in job work. Is this process is correct or not? Kindly give me your suggestion.