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?.
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.