whether production of RMC a Business Auxiliary service

This query is : Resolved 

20 July 2011 Dear All

Production or processing of goods for or on behalf of a client falls uder Business Auxiliary Service provided such activity doesnot amounts to 'manufacuture of excisable goods'.
Ready-Mix Concrete attracts excise duty and as such falls under excisable goods (i believe).
A company produces RMC for outside parties. Here my query is whether the company is liable to pay service tax in the following situations:
1) if the raw materials are supplied by the client
2) if the raw materials are used in-house.

If service tax is not applicable then whether Excise registration is required?.

Regards

CS Saju Philip
sajuphilipcs@yahoo.com

21 July 2011 Excise duty is exempted upto 150 lakhs. Then only registration is required.
Under BAS the liability would nto arise where there is manufacture under sec 2 (f) of the CEA.



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