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TMI Blog2018 (10) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods so manufacture or processed. In such a scenario the job worker alone has the liability to pay tax on the job work charges realized. The essential requirement to be fulfilled to establish a transaction as job work is the treatment or process undertaken on the goods belonging to another. Section 143 of GST Law explain the procedure to be followed in the case job work transaction. A registered taxable person may, under intimation send any inputs without payment of tax to a job worker [or Job-work and bring back Inputs after completion of job work or otherwise, within one year of their being sent out, to any of the place of business without payment of tax. In the present case, the industrial gases are produced out of the major ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LNG). De-mineralized water (DM Water), Hydrogen Rich oft Gas and raw water . The applicant allowed M/s. Prodair Air Products Pvt. Ltd. to put up a facility for processing of industrial gases on Build Own Operate basis. The applicant transport the inputs for processing through pipe lines to M/s. Prodair Air Products Pvt Ltd. The applicant proposed to execute job work agreement with M/s. Prodair Air Products Pvt Ltd for processing producing the industrial gases using the inputs provided by the applicant and send hack the processed industrial gas to the applicant. The applicant sought for advance ruling on the following: i) Whether Re-gasified Liquefied Natural Gas (RLNG), de-mineralized water (DM Water), Hydrogen Rich off Gas and raw wate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m products. As major output are not subject to GST, input tax credit availed only against the proportionate turnover of GST appIicabIe goods. The applicant stated that the proposed activity falls within the ambit of job work and not manufacture. Under regime the scope of job work includes manufacture as well. The HSN 9908 pertains to job work, specifically includes the words, manufacturing services on physical inputs owned by others. In the case of JSW Energy Ltd, Maharashtra Appellate Authority for Advance Ruling observed that job work may include manufacture or bringing into existence a new distinct product. Hence job work may or may not involve manufacturing. Hence it is argued that the proposed activity of movement of inputs to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work transaction. A registered taxable person may, under intimation send any inputs without payment of tax to a job worker [or Job-work and bring back Inputs after completion of job work or otherwise, within one year of their being sent out, to any of the place of business without payment of tax. The industrial gases are produced out of the major materials or inputs supplied by the applicant. The job worker uses some minor, ancillary goods to complete the process. The application of minor items by the job worker would not detract it being a job. Therefore the processing undertaken by M/s. Prodair Air Products on the goods belong to the applicant, another registered person qualifies as job work even if it amounts to manufacture. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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