TaxTMI 
TaxTMI 
Hi I have a subcontractor who is raising his invoice for "Galavanising" process with excise duty. I want to know that Galvanising on Iron/steel artical is equal to Sale or it is an subcontracting process. plz provide me related notification or circular if it will a sale. regards Suminder Patial
Galvanising on Iron/steel article
19 Aug 2009 
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Galvanisation as manufacture triggers excise liability, whereas VAT treats galvanising as subcontracting absent transfer of property.
Galvanisation is treated as manufacture for excise, so excise duty may apply irrespective of transfer of property; exemptions may apply where goods are sent under excise challan and applicable notifications govern jobwork. If a jobworker uses own raw materials and avails cenvat credit, excise charging obligations may differ. For VAT, galvanising is subcontracting and not a sale where there is no transfer of property; transfer of property is essential for VAT liability. (AI Summary)
Galvanisation is treated as manufacture for excise, so excise duty may apply irrespective of transfer of property; exemptions may apply where goods are sent under excise challan and applicable notifications govern jobwork. If a jobworker uses own raw materials and avails cenvat credit, excise charging obligations may differ. For VAT, galvanising is subcontracting and not a sale where there is no transfer of property; transfer of property is essential for VAT liability. (AI Summary)