is liable for service tax

[Asked by Guest]

Dear Sir

we are bus body fabricator/manufacture

we make new bus body on chassis supplied by bus/travels owner.

we have 2 option of amount charge

1. gross amount include material and labour

2.  only on labour basis when material suplied by bus owner

 are we liable for service tax under both circumstances.

or liable for exice

plz help 

AI Summary

Manufacturing activity: bus body fabrication attracts Central Excise duty and falls outside service tax coverage under the negative list.
Bus body fabrication performed on owner-supplied chassis is treated as a manufacturing activity and therefore attracts Central Excise Duty; Service Tax is not applicable because manufacturing activities are excluded under the negative list/exemption.