Any process amounting to manufacture or production of goods

Process amounting to manufacture or production of goods: negative-list coverage governs service tax treatment and job-work liability.

Services consisting of processes that constitute manufacture or production of goods are excluded from service tax under the Negative List entry for process amounting to manufacture or production of goods, as defined in section 65B(40), which captures processes on which excise duty is leviable; job-work and contract manufacturing are covered where excise duties are leviable even without transfer of title. An amendment carves out processes for manufacture of alcoholic liquor for human consumption from the negative-list protection, bringing contract manufacturing and job work for potable liquor within service tax, and Board guidance confirms that a valid excise levy is the trigger for negative-list coverage.