Applicability of excise duty and service tax - job work

[madhavvan n]

job work done by jobworker neither chargeable to excise duty where it does not amount to manufacture and not liable for service tax where the goods cleared from jobworkers premises are sent to manufacturer who clears the goods after payment of excise duty thus jobworker is neither cahrgeable to excise duty nor service tax is this understanding correct viewers/ experts pls enlighten on the above

AI Summary

Job work taxability: jobworkers not liable to excise or service tax where processing does not amount to manufacture.
Job work that does not amount to manufacture is not chargeable to central excise and may be covered by excise exemptions permitting removal without payment of duty. Processing by a jobworker is generally taxable as a service unless it amounts to manufacture or falls under specific service tax exemptions (for example, production and processing of diamonds, gold and jewellery). If the jobworker pays excise or service tax, the principal manufacturer may claim cenvat credit for those payments.