TaxTMI 
TaxTMI 
In the current case cloth is given to the job worker who does the embriodery work and then return the same to the principal. Is service tax applicable on such hand embriodery work ? Plz explain the same with relevant case law,if applicable.
Service Tax on Hand Embriodery
04 May 2012 
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Service tax on job work embroidery: leviability depends on whether the process amounts to manufacture or is exempt.
Leviability of service tax on job work embroidery depends on whether the embroidery constitutes Manufacture; if it does, Business Auxiliary Services do not apply and the job worker is not taxable, particularly where the principal clears and pays excise on the final product. If the process is not manufacture and is outside exemption or negative list protections, the job worker may be liable to service tax under categories like works contract or Business Auxiliary Services, subject to threshold limits and applicable exemption notifications. (AI Summary)
Leviability of service tax on job work embroidery depends on whether the embroidery constitutes Manufacture; if it does, Business Auxiliary Services do not apply and the job worker is not taxable, particularly where the principal clears and pays excise on the final product. If the process is not manufacture and is outside exemption or negative list protections, the job worker may be liable to service tax under categories like works contract or Business Auxiliary Services, subject to threshold limits and applicable exemption notifications. (AI Summary)