Service tax on bottling charges

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Sachin (Querist)
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28 January 2013 SIR,

KINDLY CONFIRME SERVICE TAX ON LEQUIR BOTTLING CHARGES IS EXEMPTED OR NOT IF EXEMPTED THEN PROVIDE A NOTIFICATION COPY.

REGARDS

SACHIN AGARWAL

CA bhargava

CA bhargava (Expert)
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28 January 2013 what is meant by liquor botling charges., what is the transaction and service

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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24 July 2025 Hi Sachin,

Regarding **service tax on liquor bottling charges**, here is the clarification:

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### Service Tax on Bottling Charges for Liquor

* Bottling charges for liquor generally fall under the category of **manufacturing or processing of goods**.
* As per **service tax law (pre-GST era)**, **manufacturing of goods is outside the scope of service tax**. Service tax is levied on services and not on manufacture or sale of goods.
* Therefore, **bottling charges (which are part of manufacturing/packaging of liquor) are not subject to service tax**.

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### Relevant Notification / Circular

* The exemption is implicit as **service tax does not apply to manufacturing activities**.
* Specifically, there is no service tax on **"manufacture or processing of goods"** as per the Finance Act and Service Tax Rules.
* If the bottling is part of a **contract manufacturing process**, it is treated as manufacture and is not taxable under service tax.

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### Important

* If the bottling charges are charged as part of a service contract distinct from manufacture (e.g., purely packing services separate from manufacturing), then they might attract service tax under **“packaging service”** (Service Tax Notification No. 30/2012-ST), unless otherwise exempted.
* However, in liquor industry, bottling is mostly considered a manufacturing activity.

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If you want, I can help you draft a formal reply or help locate specific government notifications.

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**Summary:**
**Liquor bottling charges are generally exempt from service tax as they fall under manufacturing and are outside service tax scope.**

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Would you like me to find the exact text or notification for official use?

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