22 November 2013
A PERSON STITCHES AND PACKS JUTE BAGS. ALL NECESSARY RAW MATERIALS I.E. JUTE CLOTH, TWINE, IRON HOOP ARE SUPPLIED BY PRINCIPAL.AFTER STITCHING IS BAGS ARE RETURN BACK TO THE PRINCIPAL.THERE IS NO EXCISE DUTY ON JUTE GOODS I.E. JUTE CLOTH, JUTE TWINE, JUTE BAGS. ONLY CESS LEVIED WHICH IS PAID BY THE PRINCIPAL. IS SERVICE TAX APPLICABLE IN THIS CASE? IF YES UNDER WHAT CATEGORY