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2019 (10) TMI 558 - AAR - GSTLevy of GST - job work charges charged for manufacturing of Cattle Feed / Poultry Feed on job work basis - scope of supply - HELD THAT:- In the present case. the applicant undertakes process on goods belonging to the principal. the same is in the nature of job work and the applicant is a job worker, the activity of manufacturing Cattle Feed / Poultry Feed by the applicant from the raw material supplied by the other registered person shall be considered as supply of services. The applicant, thus, undertakes this supply of services by way of processing the goods supplied by the principal for a consideration and the same is covered under the definition of Supply. The Crucial term which determines the issue in hand, is ‘intermediate production process’ as job work in relation to rearing of all life forms of animals. From the facts of the case in hand, the activity of manufacturing of Cattle Feed / Poultry Feed by the applicant (on job work basis) is not an activity of carrying out an intermediate production process as job work in relation to Cultivation plants and/or rearing of all life forms of animals. Job Work is defined under Section 2(68) as any treatment or process undertaken by a person on goods belonging to another registered person. In the present case, the material received by the applicant from the principal manufacturer are subjected to certain processes and returned back to the Principal manufacturer. Thus. the activity carried out by the applicant falls under Heading 9988 and not under Heading 9986 as contended by the applicant. The applicant realizes job work charges on return of goods so manufactured by it. In such a scenario. the applicant (job worker) alone has the liability to pay any tax liable on the job work charges. Thus, the activity of job work being undertaken by the applicant Clearly falls under S.No. 26 (g) of the N/N. 11/2017- Central Tax (Rate) dated 28 06.217 (as amended) and thus attracts GST@ 5%.
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