Exemption of job work from service tax

[BAL KRISHAN GARG]

A is doing job work on B's goods in the premises of B alongwith his labour & raising bills only on completed pieces on monthly basis. Firstly S.t.authority had issued notice under man.rec.agency & i have submitted copy of bills & copy of A in the books of B & form 16 A & Copy of Bank statement .it was confirmed by B in writing to the authority .whether the dept. can assume it as man.rec.agency .As invoice is raised on pieces completed not on the basis of no.of labour .whether dept.can do ? My second query is whether is it compulsory that the material must be moved from factory & backto factory after processing ? job work is done on mat.of B & after processing B is paying excise duty i.e. In other words the exemption under r Notification No.8/2005-ST that the job work is completely exempt from service tax material which is excisable and the duty paid by B as in the case. I want details of some decided cases on both the facts citied above .

Thanks

AI Summary

Service Tax Exemption Debate: Is Job Work by A on B's Premises Taxable as Manpower Supply? A discussion on whether job work performed by A on B's premises is exempt from service tax under Notification No. 8/2005-ST. A performs labor on B's goods without moving materials outside B's factory, raising questions about whether this constitutes a manpower recruitment agency service. Respondents argue that since A supplies labor and bills on a piece basis, the service may be taxable as manpower supply. Additionally, they suggest that B can claim CENVAT credit on service tax billed by A, and advise considering the one-year limitation period under Section 73 of the Finance Act, 1994.