Job Work Issue

[ANKUR JINDAL]

We are manufacturing  Towers as well as doing Job Work and we have three situations:-

1)      If we manufacture Tower by using Own Steel & Own Zinc- We are charging Excise Duty-No Issue

2)      If we manufacture Tower by using Own Zink and Steel is supplied by customer- We are charging Excise on this transaction.

Quarry:- Here some of our customers have view that as per NN 214/86 we should not charge any duty. Is we are doing wrong? 

3)      If we manufacture Tower by using steel & Zinc supplied by customer- We are charging Service Tax on it under Business Auxiliary Head.

Quarry:- Here some of our customers have view that being this is a manufacturing activity. Hence we should not charge any Service Tax and Excise duty is Exempt as per  NN 214/86.Is we are doing right?

Thanks & Regards

Ankur Jindal

AI Summary

Excise Duty and Service Tax Queries for Tower Manufacturer: Scenarios and Notification 214/86 Clarifications A company manufacturing towers and conducting job work is facing queries regarding the applicability of excise duty and service tax. They outline three scenarios: using their own materials, using customer-supplied steel, and using both steel and zinc supplied by customers. Customers argue that under Notification 214/86, excise duty should not be charged in certain cases. Respondents clarify that excise duty is not applicable if the proper procedure under Notification 214/86 is followed, and service tax is not applicable if the activity qualifies as manufacturing. If service tax has been paid, it may be refunded under specific conditions.