Powder Coating on Motor Vehicle Parts

[Ashok Chopra]

Respected Forum,

I am doing Powder Coating on Motor Vehicle Parts.  Using powder purchased by me. Not charging any service tax or excise duty.  Principal  manufacturer is paying excise duty on the product being Powder Coated by me.

Please guide me in the light of Notification No. 25/2012 dated 20-06-2012, what is my liability.

Does Powder Coating activity is "AMOUNT TO MANUFACTURE" as per Central Excise? if yes, should i apply for registration certificate as my previous year aggregate sale of specific service is more than 3.00 crore.

Prior to 01-07-2012 i was availing benefit of input services and inputs and charging Service Tax on the services provided by me as i am registered with Service Tax under B.A.S.

If powder coating is amount to manufacture either before or after  01-07-2012, what should i do and what immediate step i should take to save myliability of central excise

thanks and regards

AI Summary

Powder coating as manufacture: job work coating on vehicle parts attracts excise duty, not business auxiliary service tax.
Powder coating and chrome plating performed as job work on motor vehicle parts constitute manufacture for central excise purposes and therefore do not attract service tax under the Business Auxiliary Service category. Operators should obtain central excise registration and discharge any excise duty (with interest) for affected periods or seek administrative clarification to regularise their liability.