Dear All
We are undertaking Job work from SSI & Medium Scale Units,public sector undertaking like HAL, BEML etc. Job work carried out to HAL are exmpted under Central Excise notification No.70/92CE. Items manufactured by HAL (Final Product) are supplied to defence are exempted from payment of Central Excise duty. Job work carried out by us are in the nature of manufacture as defined under section 2(F) of Central Excise Act.
Since the final product are cleared under NIL/ Exempted rate of Central Excise Duty are we liable to pay service tax on job work carried out by us as per Service Tax Notification No.8/2005 ST, Kindly Clarify
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