Clarification - further facts

[BAL KRISHAN GARG]

Respected Madhwan Ji , Further to reply for ID 1166 , Fact that there is no evidence of labour supply but there are so many evidence of Job Work i.e. Invoice printed as Job Work in Powder Coating & Other Paint , Job Work for the month has been mentioned on the invoices raised & full details of QTY * RATE = AMOUNT AND the same has been paid by the service recipient after TDS and the service recipient has also mentioned in FORM -16 A as a contractor and Copy of ledger account in recipient books the invoice was credited as Job Charges . no.of labour done the jobs is not mentioned anywhere except assumption by the AGCR Auditors on which basis the depar.has issued letter. no attendance of the labour was on the record and Service Recipient has also confirmed this although there is no written agreement . Basic Facts that only no.of pieces done is on record of the recipient. can you clarify whether we can add this fact in our reply to A.C.or not .

Thanks

[madhavvan n]

if we give these facts then there is no issue however explain the process done by you in one para and you have to attach all relevant facts and proof which go to prove that this is a job work since the categorisation of a particular service under taxable service depends on all the ingredients which go into performance of the service and as per definition of taxable services the essential characteristics of the service is required to be brought out from which all higher authorities can conclude that this is indeed job work not amounting to manufacture and the fact that the end product is excisable takes you out of the service tax net also. this will be a new dimension where job worker has performed activity in the premises of manufacturer how the higher authorities view this has to be seen however your case is very strong and fit case of job work. hope this clears all your apprehensions and it is set at rest unless you have some more facts

AI Summary

Participant Seeks Clarification on Service Tax for Job Work in Powder Coating; Respondent Advises on Evidence and Excisable Products A discussion forum participant seeks clarification on service tax issues related to job work, highlighting that invoices indicate job work in powder coating without evidence of labor supply. The service recipient has recorded these as job charges, but auditors assume labor involvement. The respondent advises providing detailed explanations and relevant evidence to prove it as job work, emphasizing that if the end product is excisable, it falls outside the service tax scope. The respondent believes the case is strong and advises presenting these facts to higher authorities for a favorable outcome.