As per NOTIFICATION NO: 25/2012-Service Tax, Dated 20th June, 2012
30. Carrying out an intermediate production process as job work in relation to -
(a) agriculture, printing or textile processing;
(b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);
(c) any goods on which appropriate duty is payable by the principal manufacturer; or
(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year;
Whereas as per Amendments in Excise duty, zero excide duty introducted on readymade garments if the manufactureer does not take credit on input and input services.
In this case can the jobworker of such manufacturer is liable to charges and collect service tax since the principal manufacrurer is not paying any duty.
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