Exempt job work activity from levy service tax if on such activity appropriate duty of excise is payable - 008/05 - Service Tax

Rescinded vide Notification No. 34/2012- Service Tax, Dated 20/06/2012

Exempt job work activity from levy service tax if on such activity appropriate duty of excise is payable

Notification No. 8/2005-Service Tax, dated 1st March, 2005

[As amended by Notification No. 19/2005 dated 7/6/2005]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of ¹[production or processing of goods for, or on behalf of, the client] referred in sub-clause (v) of clause (19) of section 65 of the said Finance Act, from the whole of service tax leviable thereon under section 66 of the said Finance Act:

 Provided that the said exemption shall apply only in cases where such goods are ²[produced or processed] using raw materials or semi-finished goods supplied by the client and goods so ²[produced or processed]are returned back to the said client for use in or in relation to manufacture of any other goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as amended by the Central Excise Tariff (Amendment) Act, 2004 (5 of 2005), on which appropriate duty of excise is payable.

Explanation.- For the purposes of this notification,-

(i) the expression "³[production or processing of goods'] means working upon raw materials or semi-finished goods so as to complete part or whole of ⁴[production or processing], subject to the condition that such ⁴[production or processing] does not amount to "manufacture" within the meaning of clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944);

(ii) "appropriate duty of excise" shall not include 'Nil' rate of duty or duty of excise wholly exempt.

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Note :

1. For the words "production of goods on behalf of the client", the words "production or processing of goods for, or on behalf of, the client" has been substituted vide Notification No. 19/2005 dated 7/6/2005

2. For the words "produced", occurring at two places, the words "produced or processed" has been substituted vide Notification No. Supra

3. For the words "production of goods", the words '"production or processing of goods" has been substituted vide Notification No. Supra

4. For the words "production" occurring at two places, the words "production or processing" has been substituted vide Notification No. Supra