07 January 2010
Dear Sir. Under Noti.No.8/2005-ST Dt.01/03/05, full exemption has been granted taxable service (BAS)of production or processing of goods for, or on behalf of, the client for all service providers, subject to the condition (a) the goods must be produced or processsed using raw material, or semofinished goods, supplied by the client (supplier of raw material) (b) the goods produced or processsed by the job-worker are returned to the said client (c)the good so prpoduced must be used in or in relation to the manufacture of final goods classifiable under the fisrat schedule of tariff and prropriate amount of excise duty is paid on clearance of the goods from the the raw material supplier. If the final product manufactured by raw material supllier attracts Nil rate of duty or wholly exempted, this exemption is not available. Meaning thereby that if the Raw Material supplier is paying central excise dyty than only exemption is available. Regards. DILIP DARJI.
07 January 2010
No need to go even exemption notification, as if activity is amounts to manufacture, this does not cover in the defenition of BAS provided vide Section 65(105)(19).
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