Service tax or vat on hand embrodiery ?

As Mr A is delievering the product after investing his own cloth and stiching material it will be sale. But yes it can be subject to state VAT.

What about service Tax ? Will it not be Considered as Labour Charges if the Cloth (on which  hand embrodiery is performed ) is supplied by the Client ?

Whether Hand Embrodiery Charges are covered under Srevice Tax Ambit ? if Mr. A received all the Material From his Client & He Performed only Hand Embrodiery Work...

If the cloth is supplied by customer then it is a contact for work and labour. Does the same changes the character of the cloth? It may be manufacturing.

Yes after performing the Hand Embrodiery the character of cloth is changed.....

Then it amounts to manufacturing!! ANy process which to manufacture is not covered under service tax..

As per my Knowledge ST is not applicable if on manufacturing of Excise Goods, Principal pays Excise Duty.. But here nothing like that....then ???

Correct me if I am Wrong...

U mean to say he is a job worker? Job work relating to textile is exempt. If it is done under cenvat provisions then st is not applicable.

Ya He is a Job Worker only Performs the Hand Embrodiery as per the Orders of Client...

Thanks for the Help.....is there any Case law relating to this.....Please suggest......