payabale or not

[M K Bajaj]

Activity of body building for the truck is liable for service tax or not?

[Mahir S]

Such activity is not liable for service tax but liable for central excise duty payment, as it amounts to manufacture.

Bus/Truck body built on chassis are classifiable under Heading 87 of the Central Excise Tariff Act, 1985.

AI Summary

Service tax liability: truck body-building is treated as manufacture and subject to central excise, not service tax. Construction of a motor vehicle body on a chassis is characterised as manufacture, not a taxable service; therefore it does not attract service tax but is liable to central excise duty and is subject to tariff classification under the central excise regime for motor vehicle bodies.