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

Manpower supply treated as taxable manpower recruitment agency; billing per piece does not convert it into exempt job work.
Where labour is supplied by A within B's premises and A bills per piece, the activity is a supply of manpower rather than exempt job work; per-piece billing is a valuation method and does not alter classification. As a result, service tax may be leviable on A's supply while B, having paid excise on the processed goods, may claim cenvat credit. To be treated as a job worker, the processor must act in its own name and assume excise obligations or be a deemed manufacturer; limitation arguments may be available procedurally.