9911796707
TMI BlogNEGATIVE LIST OF SERVICES: PROCESSES AMOUNTING TO MANUFACTUREX X X X Extracts X X X X X X X X Extracts X X X X ..... NEGATIVE LIST OF SERVICES: PROCESSES AMOUNTING TO MANUFACTURE - By: - Dr. Sanjiv Agarwal - Service Tax - Dated:- 11-9-2015 - - Any process that amount to manufacture or production of goods is included in the negative list. This expression has also been defined in clause (40) of section 65B inserted by the Finance Act, 2012 . Though the words production or manufacture are not separately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defined in clause 40, the expression as a whole has been provided and defined. Accordingly, process amounting to manufacture or production of goods means a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 or any process amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which duties of excise are leviable under any State Act for the time being in force. Clause 40 of section 65B had been amended by the Finance Act, 2013 and w.e.f. 10-5-2013, it shall also include processes under Medicinal and Toilet Preparations (Excise Duties) Act, 1955. Amendment made by Finance Act, 2013 (w.e.f. 10.05.2013) Finance Act, 2013 has amended the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process amounting to manufacture or production of goods under section 65B(40) so as to include in its scope the process on which duties of excise are leviable under the Medicinal and Toilet preparations (Excise Duties) Act, 1955. Thus, w.e.f. 10.05.2013, all such processes on which excise duty is leviable under Medicinal and Toilet Preparations (Excise Duties) Act, 1999 shall also be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under negative list and no Service Tax would be levied. However, Service Tax shall be leviable on such process between 1.7.2012 and 9.5.2013. Amendment made by Finance Act, 2015 (w.e.f. 1-6-2015) Finance Act, 2015 has amended the entry (f) to carve out from the negative list, process amounting to manufacture or production of alcoholic liquor for human consumption. Consequently, Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax shall be levied on bottling/job work/contract manufacturing of potable liquor (meant for human consumption) for a consideration. Alcoholic liquor meant for industrial use or for any other purpose shall still be covered under negative list (e.g. industrial spirits etc). Certain specified job works/production processes are exempt from Service Tax vide Entry No. 30 of exemption Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 25/2012-ST. To give effect to the exclusion of processes in relation to alcoholic liquor from negative list, exemption under Notification No. 25/2012-ST has also been amended to exclude exemption to intermediate production processes/job works in relation to alcoholic liquor meant for human consumption. It may, however, be noted that manufacture of liquor meant for human consumption is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to state excise duties and not Central Excise Duty under the Central Excise Act, 1944. CBEC vide letter DOF No. 334/5/2015-TRU dated 28.02.2015 has clarified the amendment as follows The entry in the Negative List that covers service by way of any process amounting to manufacture or production of goods [ section 66D (f) ] is being pruned to exclude any service by way of carryin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g out any processes for production or manufacture of alcoholic liquor for human consumption. Consequently, Service Tax shall be levied on contract manufacturing/job work for production of potable liquor for a consideration. In this context, the definition of the term process amounting to manufacture or production of goods [ section 65 B (40) ] is also being amended, along with the Negative List ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry [ section 66D (f) ], with a consequential amendment in S. No. 30 of notification No. 25/12- ST, to exclude intermediate production of alcoholic liquor for human consumption from its ambit. - Reply By Debtosh Dey as = Processing of newspapers, journals magazines are included in Excise Tariff but without duty. Will these be 'manufacture' for the purpose of Negative list ? Deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tosh Dey, M.Sc (Engg), FIE, C. Engg (I), FCMA, FCS, LL.B. Dated: 12-9-2015 Reply By Narhar Nimkar as = The additional point in this case is if the job work activity is done by a person for others and he is also doing manufacturing activity for himself, job work being covered in Negative List, whether the provisions of Rule 6 of Cenvat Credit Rules will be applicable ? Dated: 12-9-2015 Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Dr. Sanjiv Agarwal as = Dear Sir, Going by the strict interpretation of Section 65 B (40) read with Section 3 of the Central Excise Act,1944, a view can be taken that processing of newspapers, journals magazines amount to manufacture. Your attention is also invited to entry No. 30(a) of Notification No. 25/2012-ST where a specific exemption has been provided to carrying out an inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmediate process as job work in relation to printing. Regards, CA Neha Somani Dated: 14-9-2015 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
