https://www.taxtmi.com/caselaws?id=451262 CESTAT Ahmedabad dismissed the department's appeal regarding service tax liability on job work manufacturing agreement. The respondent-assessee entered into agreement with a company for manufacturing pesticides on job work basis, receiving both fixed monthly charges of Rs. 16 lacs and variable costs. Department contended fixed charges constituted declared service under Section 66E(e) of Finance Act, 1994. CESTAT held the agreement must be considered in entirety as primarily for job work manufacturing. Fixed charges were integral part of manufacturing costs for maintaining formulation confidentiality, not separate declared service. Payment structure with fixed and variable components did not alter the agreement's nature as job work manufacturing contract, making it not liable for service tax under declared service provisions. en-us Thu, 21 Mar 2024 00:00:00 +0530 Fri, 22 Mar 2024 10:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451262 CESTAT Ahmedabad dismissed the department's appeal regarding service tax liability on job work manufacturing agreement. The respondent-assessee entered into agreement with a company for manufacturing pesticides on job work basis, receiving both fixed monthly charges of Rs. 16 lacs and variable costs. Department contended fixed charges constituted declared service under Section 66E(e) of Finance Act, 1994. CESTAT held the agreement must be considered in entirety as primarily for job work manufacturing. Fixed charges were integral part of manufacturing costs for maintaining formulation confidentiality, not separate declared service. Payment structure with fixed and variable components did not alter the agreement's nature as job work manufacturing contract, making it not liable for service tax under declared service provisions. Case-Laws Service Tax Thu, 21 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451262