Whether labour job contractor is termed as "manufacturer"

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I have client who is Labour Job Contractor who gets job of Curtain stiching.

All materials are suplied to him, he does only the labour work through hired labour and returns the finished product (Curtain).

Whether this process amounts to manufacture under Excice ? also,

Will contractor also be termed as manufacturer and liable for excice or service tax?

Replies (1)

Carrying out an intermediate production process as job work in relation to textile processing are exempt from service tax vide notification no. 25/2012-ST and manufacturing of garments are also exempt from excise duty. 

 

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