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Surely not if the duty is exempted by way of threshold exemption, no service tax is liable. The goods still amounting to manufacture and excisable however not attracting duty by virtue of threshold exemption.
ST liability has to be discharged by the job worker if his turnover is above Rs 10 lacs irrespective of the fact that manufacturer is enjoying SSI exemption of Rs 150 lakhs
If the work does not amount to manufacture then it would be catrgorised as a service and service tax would be payable once the job worker crosses the threshold limit of 10 lakhs. Registration needs to be applied for when he crosses 9 lakhs
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