meaning of Supply

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BAL KRISHAN GARG (Querist)
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08 May 2009 Sir ,
Processing on goods supplied by the manufacturing unit is exempted vide noti.no.8/2005 vide explanation II .But here meaning of supply is to be interprated more in case if the factory is spread over in Big area and it given work to someone for processing on job basis i.e.completion of work basis and billing by the service provider on the completion of work basis on monthly basis.the factory is clearing the processed goods ultimately by paying duty to excise department.as the act has mentioned that service tax will not be liable he service provider make process on the goods supplied by the manufacturer and he pay the excise duty after processing of goods .
In the present case the movement of raw mat./semi finish is in the premises itself whether it will meant as supply of goods ?
my e-mail id is gargbk2001@yahoo.com

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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08 May 2009 As long as the process carried out by you is in terms of job work and the processed goods are liable for duty of excise there is no liability at all. The fact that the work is done in the factory premsies itslef may not be relevant as long as you are responsible for say damages where the cost of materials would be debited to you i.e. to say you work on independent basis.

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