JOB WORK -Payment of service tax and excise duty

[praveenkumar makam]

our company id doing Job work (i.e manufacturing of chemical Product) and send it to customer. The Finished product is liable to pay Excise duty. whether Job work is liable to pay excise duty and service tax. If it it is liable under which section

AI Summary

Job work treated as manufacture excludes service tax; excise liability rests with the principal when notification applies.
Where a job worker undertakes a process that amounts to manufacture under the Central Excise Act, that activity falls outside the service tax net and is treated as manufacture for excise purposes. Excise duty allocation depends on the agreement and applicable excise notification: if goods are sent under the relevant notification permitting job work clearances, excise may be payable by the principal; otherwise excise responsibility follows the manufacturing activity.