Service tax exemption for machining of part of wind mill

This query is : Resolved

sivaraj (Querist)
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11 February 2012 we are manufacturing the parts of wind mill and the materials are sent to job workers. in this reg. their central excise range officers told to them service tax is levyable for your machining of parts of wind mill(exempted goods Nt 6/2006 C.E)
I want to know whether service tax is applicable or not. pls ref any service tax notification.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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12 February 2012 The view of the range Officer is correct. The Service is taxable under Business Auxiliary Service. Since the product is exempt from payment of Excise Duty(as mentioned in the query) the exemption available vide notification no. 08/2005 - ST dated 01/03/2005 is not available to the job worker.

Kindly refer notification no. 08/2005 - ST dated 01/03/2005 amended by notification no. 19/2005 - ST dated 07/06/2005.