Is activity of tanker body building on job work basis, a supply of goods or services? M/S CC FABS

Last updated: 18 August 2021

Save Share

Quick Summary

This ruling clarifies whether the activity of building tanker bodies on a job work basis constitutes a supply of goods or services. The applicant receives chassis from customers and fabricates tanker bodies using procured materials. The Authority examined the entire process, from receiving the chassis to delivering the finished, licensed tanker.

Court :
KERALA AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX DEPARTMENT

Brief :
The applicant is engaged in tanker body fabrication on the chassis given by the customer on job work basis. The customers purchase chassis and hand over to the applicant for fabricating the tanker body.

Citation :
KER/107/2021

KERALA AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES DEPARTMENT TAX, TAX TOWER,

OF :Shri. KARAMANA, THIRUVANANTHAPURAM — 695002

BEFORE THE AUTHORITY Sivaprasad S, IRS& : Shri. Senil A K Rajan

The applicant is engaged in tanker body fabrication on the chassis given by the customer on job work basis. The customers purchase chassis and hand over to the applicant for fabricating the tanker body. On receipt of chassis, a work order with the specifications of the tanker body will be raised and on acceptance of the same by customer, the materials used for structural fabrication of tanker will be procured and tanker body will be built on the chassis. The processes involved in the manufacturing activity are; (a) receiving chassis at workshop; (b) purchase of raw steel; (c) cutting and bending of raw materials; (d) welding of all cut and bend parts; (e) assembly of all fabricated parts and statutory parts; and (f) final product on chassis and delivery of the tanker with license.

Please find attached the enclosed file for the full judgement

FAQ :

The applicant fabricates tanker bodies on chassis provided by customers on a job work basis.

Customers purchase the chassis and then hand them over to the applicant for fabrication.

The applicant procures raw steel and other materials needed for the structural fabrication of the tanker body.

The processes include receiving the chassis, procuring raw steel, cutting and bending materials, welding, assembling parts, and delivering the final product on the chassis with a license.