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Service tax liability for m/c on rent/ lease/loan

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This query is : Resolved

Avinash Vithalrao Kulkarni (Querist)

25 September 2012 Sir,
What will be the Jobwork cost (i.e.Processing Charges) when processor add up the raw material to the finished product he is processing?

is duty payable on the cost of raw material he is using to complete the process?

is duty payable on the cost of raw material he is using to complete the process but sold to the principle manufacturer whose product is exempted from duty?
Best Regards,

For Dhoot Transmission Pvt.Ltd.
Avinash V.Kulkarni
Manager-Excise(Corp.)

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 October 2012 Excise duty will not be payable if raw material/semi-finished components are sent for job work under the cenvat provision or under notification No. 214/86-CE. however in other cases if job work results in manufacture of a product, duty will become payable by job worker.

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