9911796707
TMI Blog2021 (10) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... a), (ib) and (ic) above. Therefore the subject supply of services will be covered by the residuary entry at item (id) of the said notification, namely, Services by way of job work other than (i), (ia), (ib) and (ic). Hon ble Supreme court in the case of Maruti Suzuki Limited Vs. CCE, New Delhi, [ 2015 (3) TMI 784 - SUPREME COURT] has also held that there is a distinction between processing and manufacture and that Electro Deposition (ED) Coating of anti-rust treatment to increase shell life of various component is merely a processing activity and not a complete manufacturing activity. The activity of the Applicant fits the definition of Job work under the present law. Further in terms of the Apex court s ruling also, activity of coating is only a process undertaken on goods. Therefore the activity undertaken by the applicant is covered under the definition of Job work - the impugned services supplied by the applicant are in the nature of job work services, covered under Entry at item (id) under heading 9988 of N/N. 11/2017-Central Tax Rate dated 28.06.2017 as amended. Whether Notification No.20/2019-Central Tax (Rate) New Delhi, 30 11 September, 2019 - where GST Rate on Job work is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then it goes through Catholic Electro Deposition (CED Line) for final coating - CED coating is a process which is done in order to increase the life span of auto components parts, here basic raw materials used is various types of Paints and use of consumables. Powder Coating: 2.3 Firm receives products (e. g. Auto Parts) from its customers through Delivery challan only, here as per requirements of the customer the parts go through the Phospheting Treatment (PT Line) first and then for coating with the use of Powder coating gun Machine (Here main raw material consist of Powder which is type of paint only) 2.4 Taxable event in GST is the event which on its occurrence creates or attracts the liability to lax. The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as 'supply.' 2.5 Job Work as per Section 2(68) means any treatment or process undertaken by a person on goods belonging to another registered person and the expression 'Job worker" s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication was admitted and Final Online hearing was held on 21.09.2021. The Authorized representatives of the applicant, Shri. Hemant Dagale, CA and Shri. Ram Sharma (Finance Head) were present. The concerned jurisdictional officer Shri Sun il Chavan (Deputy Commissioner E-807 Pune Division) was also present. The Authorized representatives made oral and written submissions in this matter. The jurisdictional Officer also made written submission. 4.3 We heard both sides. 05. DISCUSSIONS AND FINDINGS: 5.1 We have gone through the facts of the case, written and oral contentions made by both, the applicant and jurisdictional officer at the time of preliminary as well as the final hearings. 5.2 The basic issue before this authority is whether the activity/process carried out by the applicant on goods received from its clients amounts to jobwork and if yes, whether the provisions of Notification No. 20/2019 - C.T. (Rate) dated 30/09/2019 applicable in this case. 5.3 The applicant's activity is rendering of premium CED Coating, Powder Coating and metal finishing coating services for various products belonging to its clients. Applicant also offers (a) CED Coating for Metallic Components ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson and the expression job worker" shall be construed accordingly'. 5.7 Whereas the term 'manufacture' has been defined under section 2(72) of the GST Act, 2017 to mean "processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly" 5.8 The product that comes into emergence after the coating process is undertaken is not the different product but the process undertaken by them only increases the life span of the said products. No new products emerges after the subject process has been carried out. Further, the goods are received by the applicant under the cover of a challan issued by the principal and the goods after process are sent back to the principal. 5.9 From the submissions made by the applicant we find that, after they have undertaken process on the goods supplied by their GST registered principal, the new product that emerges does not have a distinct name, character and use and therefore the applicant cannot be considered as a manufacturer of the impugned products. Further, the title to the goods on which the phosphating and coating treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1975). Explanation.- "man made fibres" means staple fibres and filaments of organic polymers produced by manufacturing processes either,- (a) by polymerisation of organic monomers to produce polymers such as polyamides, polyesters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process [for example, poly(vinyl alcohol) prepared by the hydrolysis of poly(vinyl acetate)]; or (b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates. 2.5 (ii) Manufacturing services on physical inputs (goods) owned by others, other than (i) above 9 5.14 Entry at item (id) under heading 9988 of Notification No.11/2017-Central Tax Rate dated 28.06.2017 was inserted with effect from 01.10.2019, by per Notification No. 20/2019- Central Tax (Rate) dt. 30.09.2019 and subsequent to the same the relevant entry at Sr. No. with all amendments made till 01.10.2019, is as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ib) and (ic) above 6 "(ii) Services by way of any treatment or process on goods belonging to another person, in relation to- (a) printing of newspapers; (b) printing of books (including E3raille books), journals and periodicals. "(c) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5 per cent, or Nil."; 2.5 "(iia) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6per cent. 6 "(iii) Tailoring services 2.5 (iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above. 9 5.15 From the discussions above, we find that, the services provided by the applicant does not fall under (i) (ia), (ib), (ic) of the above mentioned notification. We have already found that the impugned Services supplied by the applicant are in the nature of jobwork. We further find that the said services do not fall under entries at items (i), (ia), (ib) and (ic) above. Therefore we find that the subject supply of services will be covered by the residuary entry at item (id) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs procured by the appellants in the present case, continue to be the same inputs even after ED coating and that Rule 57F (2) proviso would therefore apply Oren such inputs are removed from the factory for home consumption, the duty of excise payable being the amount of credit that has been availed in respect of such inputs under Rule 57A." 5.17 The activity of the Applicant fits the definition of Job work under the present law. Further in terms of the Apex court's ruling also, activity of coating is only a process undertaken on goods. Therefore the activity undertaken by the applicant is covered under the definition of Job work'. 5.18 In view of the above, we hold that the impugned services supplied by the applicant are in the nature of job work services, covered under Entry at item (id) under heading 9988 of Notification No. 11/2017-Central Tax Rate dated 28.06.2017 as amended. 5.19 The second question raised by the applicant is whether Notification No.20/2019-Central Tax (Rate) New Delhi, 30'11 September, 2019 - where GST Rate on Job work is reduced to 6% from 9% is applicable to the firm. 5.20 We have already held above that the service supplied by the applicant is in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
