5.
Despite above reproduced clarification by Board in the referred circular, I find that issue can be complex in nature - depending upon individual facts / circumstances - due to the followings:
A. Under Schedule II, 'any transfer of the title in goods is a supply of goods' and 'Any treatment or process which is applied to another person's goods is a supply of services'
B. As per Section 2 (68), “job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly;
C. As per Section 2 (30), “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
NOW, in given facts of the case, if title of Material Y is getting transferred from job-worker to XYX during / due to the job-work process and if supply of Material Y is the 'principal supply' as defined above, whether job-worker can raise bill for supply of 'services'?
Another connected issued - to my mind - is whether is Article 366 (29A) relevant or NOT for levy of GST (i.e. for treating any activity as "deemed sale") considering the fact that GST is levied on 'supply of goods, services or both'?
Please treat this as part of pure academic discussion.