TaxTMI 
TaxTMI 
Dear sir, As per Notification No.22/2002 NT the process of Galvanization amounts to manufacture and also as per Section 65(19) of Finance Act, 1994, Production or processing of goods on behalf of the client is liable to service tax. With the above background please clarify whether a client who is engaged in galvanization of steel is liable under service tax or excise act.
Liability of excise or service tax - galvanization
04 Jun 2007 
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Processing that amounts to manufacture cannot attract service tax; central excise duty applies as primary levy.
Processing falls within the BAS category but excludes processes amounting to manufacture, including deemed manufacture; therefore where a galvanization process amounts to manufacture under excise law it cannot be subjected to service tax and Central Excise Duty applies, subject to the applicable excise exemption threshold. (AI Summary)
Processing falls within the BAS category but excludes processes amounting to manufacture, including deemed manufacture; therefore where a galvanization process amounts to manufacture under excise law it cannot be subjected to service tax and Central Excise Duty applies, subject to the applicable excise exemption threshold. (AI Summary)