Notification No. 25/2012-ST wide Entry no.30 (c). exempts Carrying out an intermediate production process as job work in relation to
any goods on which appropriate duty is payable by the principal manufacturer;
from payment of Service Tax.
My Question is if a job worker is carrying on process which is not amounting to manufacture and processed goods are returned back to the factory and further manucturing process is carried on in the factory and after further manucaturing process the goods are cleared on payment of duty.
In such cases whether job worker is liabile to pay service tax.
Thanks and regards
Service Tax Exemption for Job Work: Notification No. 25/2012-ST, Entry 30(c) Confirms Exemption for Intermediate Processes. A query was raised regarding the applicability of service tax on job work processes that do not amount to manufacturing, where processed goods are returned for further manufacturing and then cleared on duty payment. Two responses referenced Notification No. 25/2012-ST, Entry No. 30(c), which exempts intermediate production processes as job work related to goods on which the principal manufacturer pays appropriate duty. Both responses confirmed that the job worker's services are exempt from service tax under this provision, regardless of whether the process amounts to manufacturing. (AI Summary)
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