Claim or Refund St for Trading (import & Export) he gave Job work for his cleint requirment and Job worker Collected ST, Trader Claim Or refund the ST Amt ?

[p parthiban]

Sir, One of my client doing (Trading) Import CNC Machine from other country

After imported CNC Machine He had done some alteration work in CNC Machine for his client requirement so he gave  to  job work Third Party, The third party  after finished job work to give back our client and third party have raised bill for done Job work and he has been collected service tax.                                                

My question is : My Client Can Claim Service tax? My client is only Trading (Import, Sometimes he is doing export) business only.

[YAGAY andSUN]

Since Trading activity has been concluded as exempted service therefore no CENVAT credit will be allowed.  Further, if jobwork  done by the third party amounts to manufacture as a whole, then no service tax would be liable to be paid, hence excise duty will be paid.  Please check the facts and revert.

AI Summary

Exempt trading status prevents CENVAT credit and bars service tax claims; jobwork as manufacture triggers excise. A trader undertaking import and engaging a third party for alteration cannot avail CENVAT credit where trading is an exempted service. If the third party's job work amounts to manufacture, service tax will not be leviable on the job work and excise duty consequences arise instead; factual elements of transformation must be examined to determine classification.