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

Classification of wire drawing as manufacture: copper wire drawing qualifies, silver wire drawing does not, affecting tax treatment.
Drawing and redrawing of copper wire is treated as manufacture, whereas drawing or redrawing of silver wire is not regarded as manufacture; consequently, applicability of excise duty and service tax on the job work must be determined according to that characterization, noting that the drawn wire is used in jari manufacture and there is an expressed uncertainty about excise liability on jari.