Whether job work of wire drawing from copper or silver wire comes under the scope of ser.tax?The c

[sunil mehta]

Whether job work of wire drawing from copper or silver wire comes under the scope of ser.tax?The copper/silver 'drawn wire' is used in manufacture of 'jari'(gold thread).I am not sure but i know that excise duty is not leviable on mfg. of 'jari' mfg.(gold thread). Pl. reply in context of provisions of excise & ser.tax applying to 'wire drawing activity> Thanking you,

[Surender Gupta]

Yes, the drawing and redrawing of copper wire is amount of manufacture, but drawing or redrawing of silver wire is not amounting to manufacture. Applicability of service tax and excise duty may be decided accordingly.

AI Summary

Wire Drawing from Copper as Manufacturing: Service Tax Applies; Silver Wire Exempt. Excise Duty Not Applicable for 'Jari'. A query was raised regarding whether the job work of wire drawing from copper or silver wire falls under the scope of service tax. The drawn wire is used in the manufacture of 'jari' (gold thread), which is not subject to excise duty. A response clarified that drawing and redrawing copper wire is considered manufacturing, while the same process for silver wire is not. The applicability of service tax and excise duty should be determined based on this distinction.