As per Negative list 66D ,exemption from Service Tax is available to an activity which amounts to Manufacture.
If any Job Worker carried out any work amounts to manufacture ,Whether he can avail exemption from Service Tax on the basis of above section.
Whether it is necessary to look the entry NO. 30 of the Notification No. 25/2012 dated : 25/06/2012 regarding exemption from Service Tax in case of Job Work (amounting to manufacture or not),as he already availed exemption from Service Tax by virtue of Negative List.
As per my view to avail the exemption for job worker under service tax it is neccessary to read Section 66D and Notification No,25/2012 together.As Section 66D says that no service tax on process amounting to manufacture or production of goods,thenotification no.25/2012 exempts the service of carrying out an intermediate production process as job work in relation to any goods on which appropriate duty is payable by the principal manufacturer.So in case of a Job worker,service tax exemption is available only when we manufactures goods on which duty is paid.In case of Nil rated goods ,service tax is payable because though he is manufacturing the excisable goods chargeable to nil rate of duty,but no excise duty is paid ,the said production activity would be covered under service tax .
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