Service Tax liability on job work

[Ramesh Agarwal]

a RMC (Ready Mix Concrete) plant is doing job work of another private limited company. All the raw materials required i.e. Cement, Sand, Stone Chips and Ad mixture are supplied by the principal company and paying job work charges for supplying ready mix concrete with out charging any excise duty. My question is that whether there is any Service Tax liability on the job work charges received from the principal supplier?

AI Summary

No Service Tax on RMC job work charges if principal pays excise duty on finished goods. A Ready Mix Concrete (RMC) plant is performing job work for a private limited company, which supplies all necessary raw materials and pays for the job work without charging excise duty. The query concerns whether there is a Service Tax liability on these job work charges. One response questions the absence of excise duty payment on the RMC. Another response clarifies that if the principal company pays central excise duty upon clearing the finished goods from the job worker, there is no Service Tax liability on the job work charges.