We are the manufacturer of Gasket Sheet, The Scrap generated in sheets are being send for job work for grinding of scrap, after grinding we use in our manufacturing process. The job worker issues their bill with Service Tax and we claim the service tax as our input services. The dept. denied to give the claim of Service tax since the job worker should not charge the service tax for the scrap of same manufacturer. Our contention is that since the Service tax is charged by the job worker , hence we have claimed.
01 February 2008
if the service is provided for taxable goods or service then the job worker should not charge service tax on intermediate products. but if he has charged then u can avail the credit of it.
CAclubindia
