Job work- service tax

This query is : Resolved

muthukrishnan (Querist)
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21 August 2009 Exemption U/N 8/2005 is not available to the jobworker if the goods cleared the pricipal are exempted goods or chargeable to nil rate of duty.
if the principal further process the goods received from the jobworker at their factory and then export the goods without payment of duty,whether ST has to be paid by the jobworker.

Dilip Darji

Dilip Darji (Expert)
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22 August 2009 Dear Sir.
Noti.No.8/2005-ST exempts from payment of service tax, subject to following two conditions (i) the process undertaken by the job-worker does not amount to manufacture(ii) raw material supplier pays duty of excise on the Finished goods.
In case raw material supplier is exporting the goods under bobd i.e without payment of duty, you are not entitled to avail the exemption benefit under Noti.No.8/2005.
Regards.
DILIP DARJI.