Liability of excise or service tax - galvanization

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....iability of excise or service tax - galvanization<br> Query (Issue) Started By: - Chalapathy Rao Marthy Dated:- 4-6-2007 Last Reply Date:- 5-6-2007 Service Tax<br>Got 1 Reply<br>Service Tax<br>Dear si....

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....r, 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 ....

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....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. Reply By Madhukar N Hiregange: ....

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....The Reply: The activity of processing falls under BAS category and specifically excludes the processes amounting to manufacture under Section 2(f). This includes the deemed manufacture. Therefore if u....

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....nder excise a process amounts to manufacture then the same canot be subjected to servcie tax. In your case only CED would be applicable after the exemption of 150 lakhs.<br> Discussion Forum - Knowled....

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....ge Sharing ....