05 August 2011
if the job work is confirmed by 214/86 or cenvat challan of client, then only service tax is not applicable, otherwise paying service tax is on safer side, otherwise the clearance value of goods would invite Excise duty.
12 August 2011
Under Notification no 214/86, Principal manufacturer, desiring to pay duty have to give an undertaking to pay duty on goods manufactured by job worker on his behalf where inputs & other raw materials have been supplied by him.In such case the job worker shall have no liability to pay duty on goods removed from place of removal ie job worker's factory. Now coming to the second part, as job worker, X can pay service tax either as BAS or pay Excise duty on value of goods removed & not both depending on agreement entered with principal manufacturer.
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