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2020 (1) TMI 713 - AT - Service TaxExemption from job-work - intermediate process - services of cutting of fabric according to the pre-determined shapes, sizes, specifications as designed, on job work basis to one M/s Aero Club, who was engaged in the manufacture of readymade garments - Serial No.30 of N/N. 25/2015-S.T. dated 20 June, 2012 - HELD THAT:- There is no dispute about the legal position. If the goods are the one on which appropriate duty is payable by the principal manufacturer, exemption from service tax would be available to the job worker. Though the expression used in Serial No.30(c) of the Notification is ‘Payable’ and not ‘Paid’ but definition 2(b) clarifies that such payable would not include nil rate of duty or duty wholly exempted. As such, the principal manufacturer is required to pay the duty on their final product so as to make the intermediate job worker exempted from payment of service tax. Admittedly the said issue is a factual issue required to be verified by the Authorities. The appellant have placed a return on record for the month of February 2013 indicating such payment of duty by the principal manufacturer - In such a view, the Adjudicating Authority is required to verify the fact of payment of duty by the principal manufacturer for the period involved in the present appeal - matter remanded to the Original Adjudicating Authority for doing the needful. Application disposed off.
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