Levy of service tax on production of alcoholic beverages on job work basis -reg

Business Auxiliary Service exclusion applies where contract bottling amounts to manufacture, while partial processes remain taxable.

Brand owners granting use of trademarks and technical assistance render an Intellectual Property Service taxable on gross consideration. Where a contract bottling unit performs the complete process amounting to manufacture as per the Central Excise Act, the BAS exclusion applies and BAS is not chargeable; partial processes such as packing or labelling remain chargeable to Business Auxiliary Service. Rent from leasing a distillery is taxable under Renting of Immovable Property Service.