Fabrication work on contract basis

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2016 Assessee is into the business of fabrication on contract basis, all the material(iron sheets) is supplied by the contractee. The assesse cuts the sheets in the sizes as per specification of the contractor and supply it to contractor.
Whether the same is liable to service tax or excise or will be treated as works contract?
If service tax, under which head?

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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30 July 2016 The activity does not amount to manufacture and so would not leviable to excise , however would be liable to service tax under Business Auxiliary service if the principal manufacturer who has contracted for such job-work and using such cut sheets as inputs is not paying excise duty on the final product.

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