one excise-able unit gives material for job work to y firm and y firm is not excise-able unit but this y firm transfer material for further processing to z unit. so my query is whether z unit is liable for service tax? because material is exciseable material. If any exemption is available for z unit then pls give me circular no and any case laws available if any
19 July 2015
No service tax payable on any process amounting to manufacture or production of goods by job worker on which appropriate duty will be paid by the principal manufacturer. See S.No. 30(c) of notification 25/2012-ST dt.20/06/2012.