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Excise or service tax on gauge devlopment

This query is : Resolved 
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(Querist)
22 July 2014 DEAR SIR

WE ARE PVT LTD CO. & MANUFACTURING A PRODUCT (FLANGE) FOR OUR CUSTOMER. WE HAVE DEVLOPED GAUGE FOR THIS ITEM. PARTY HAS RAISED A P.O. FOR GAUGES DEVELOPMENT & CHARGED SERVICE TAX IN THEIR P.O. BUT WE HAVE PURCHASE MATERIAL FOR DEVELOPMENT OF THIS GAUGE. PLEASE TELL WHAT WILL BE CHARGED EXCISE OR SERVICE TAX AT THE TIME OF INVOICING.
GAUGES WILL BE PROPERTY OF PARTY.

THANKS & REGARDS
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Arun Kumar Singh

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Arun Kumar Singh (Expert)
23 July 2014 If process amounts to manufacture or production of goods then service tax is exempt.
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