TaxTMI 
TaxTMI 
Dear Madhwan, In my query,if A can'nt be treated as a Job Worker then under what head ? He is painting c/fan blades for B and B after processing further sales after paying duty.Here i draw your attention that A is producing /processing of goods for ,or on behalf of B and if i not use the word job work and A is processing the goods using the raw mat.or semi finish.goods and B is using the processed goods in relation to manufacture of any other goods specified in Shd.I of cen.excise tariff and B is clearing the goods only after payment of duty.Whether Notification No.8/2005-ST will not apply vide explanation II. Further Manpower agency relation of employee-employer must exit alongwith the individual must under the direction of B but in the instatnt case although relation exist between individual and A but direction of B to individuals not exist so how it will apply ?
Category - painting - Applicability of notification
07 May 2009 
2 Replies 
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Business auxiliary service: service tax liability arises where a processor works on manufacturer's premises and goods are not sent back.
A paints/processes fan blades for B using inputs and the processed goods are cleared by B after payment of excise duty. The March 2005 exemption for business auxiliary services-applying where a person produces goods from inputs received and returns the resultant product to the same manufacturer for further manufacture-does not apply on these facts. The activity performed in the manufacturer's premises and the contractual/supervisory arrangements indicate the service is taxable as Business Auxiliary Service, while classification as manpower supply depends on the agreement and control over personnel. (AI Summary)
A paints/processes fan blades for B using inputs and the processed goods are cleared by B after payment of excise duty. The March 2005 exemption for business auxiliary services-applying where a person produces goods from inputs received and returns the resultant product to the same manufacturer for further manufacture-does not apply on these facts. The activity performed in the manufacturer's premises and the contractual/supervisory arrangements indicate the service is taxable as Business Auxiliary Service, while classification as manpower supply depends on the agreement and control over personnel. (AI Summary)