Service tax on Tools and Dies

[varun arora]

Dear Experts,

If I manufactures the tools and dies on customised basis, suppose My customer provides me the drawing and specification of tools and I procures raw material at my end and manufactures the tools and dies.

And My customer will approve the Dies after testing process and modification, if required.

Please suggest me whether this is a Works Contract and chargeable to Service tax OR covered under Central Excise as under Manufacturing Activity??

Thanks in Advance.

AI Summary

Manufacturing Tools and Dies from Customer Specs Classified as Manufacturing, Subject to Excise Duty Under Central Excise Act, 1944. An individual inquired whether manufacturing tools and dies based on customer specifications should be classified as a works contract subject to service tax or as a manufacturing activity subject to central excise. Experts responded that the activity constitutes manufacturing under the Central Excise Act, 1944, and is subject to excise duty. They emphasized including the value of customer-supplied drawings in the transaction value. Tools and dies fall under Chapter 82 of the Central Excise Tariff Act, 1985, with potential exemptions available. The importance of obtaining a chartered certificate for valuation and disclosing complete facts for accurate guidance was also noted.