Mega Exemption notification 25/2012-Compulsion or optional

[Vinay Sharma]

We are manufacturers of auto parts and pay full excise duty on removal of our final products. Please clarity whether mega exemption notification  no. 25/2012 has to be compulsorily availed or it is optional. Some of our Job workers who are covered under serial no. 30 (c) of this notification but do not want to avail this exemption thus charging service tax on their bills. If we avail CENVAT credit of the same, will it be in order or we should compel our job workers to compulsorily avail this notification and do not charge service tax on thier bills raised to us. Please clarify.

AI Summary

Auto Parts Manufacturers Debate: Is Mega Exemption Notification 25/2012 Compulsory or Optional for Service Tax and CENVAT Credit? A discussion on a forum addresses whether the Mega Exemption Notification No. 25/2012 is compulsory or optional for manufacturers of auto parts who pay full excise duty. The main concern is whether job workers should be compelled to avail the exemption or charge service tax, which affects the ability to claim CENVAT credit. Participants note that while the notification does not explicitly state if exemptions are compulsory, it is generally interpreted strictly. If service tax is charged, it can be claimed as CENVAT credit, but availing the exemption may require reversing credit or incurring costs.