Confusion as to definition of manufacture... but please clear me

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This query is : Resolved

Pavan Kumar (Querist)

18 July 2016 Hello sir /madam... I have a doubt regarding definition of manufacture. A company (for suppose say X PVT LTD) is holding manufacturer registration with central excise. Main line of activity is fabrication. It accepts job works from other company. In that.,other company is to provide raw materials and the design based on which their finished product is to be.. This company engaging some man power for that fabrication process. My doubt is that whether this Job work comes under manufacture or not!!? This X company is not charging excise duty in its invoice raised on the other company... Not even service tax. As it is a supply of man power and it is covered under complete reverse charge mechanism. So service tax is not applicable. But please clarify me whether excise duty applicable or not.. Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)

18 July 2016 No, it is job work....NOT manufacturing....
It is manufacturing for that OTHER company (Since X pvt ltd is having excise registration, it has to be very careful and meticulous in doing such job work.... the onus of proof that it is job work lies with X pvt ltd.)

Pavan Kumar

Pavan Kumar (Querist)

18 July 2016 Thanks for your response sir... But how can we say that it is not a manufacturing. I mean the basis. All the fabrication work is done by X company only right? And that other company is just providing raw material. Not doing any work. How can we call it as manufacturer. Please quote if any provision is there in this regard.

Amol S Joglekar

Amol S Joglekar (Expert)

19 July 2016 first you decide your true and fair STAND and stop arguing with yourself.
On one hand you you re saying....manpower supply......now you started saying something else.....
can you please tell me what is your EXACT problem?

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