Liability and category of service tax

[sunil mehta]

A dealer of glass (plain glass & mirror glass) makes designs on glass (as per requirement of end user) and then sells them to customers after cutting them as per their order.The work of 'making designs on glass sheets' is entrusted to outside person.(jobworker).The jobworker engaged in 'putting designs ' on glass sheets gives some chemical treatment to glass sheets before it is ready for delivery to the dealer.He uses his own labour and premises for such jobwork.The jobworker gets labour charges fron the dealer. Query:- 1)whether job work (labour charges) income of jobworker is liable to service tax? 2)If yes,then under which category ? 3)Is the process of 'putting designs on glass called 'manufacture' under C.Excise? 3)Whether dealer who sells glass sheets(after 'putting designs) to ultmate customers is any way covered under C.Excise or S.Tax?

AI Summary

Job worker's labor charges liable for 10.30% service tax; no excise duty as process isn't manufacturing. A dealer sells glass products with designs created by a job worker who applies chemical treatments and uses his own resources. The query concerns whether the job worker's income from labor charges is liable for service tax and under which category, and if the process is considered manufacturing under Central Excise. The response clarifies that the job work does not constitute manufacturing, thus not subject to excise duty. However, the job worker is liable for service tax at 10.30%, and the dealer cannot claim credit as the goods sold are exempt from excise duty. Relevant service tax and excise notifications are cited.