TMI Blog2018 (10) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... rmediates are goods and in turn Input by the principal or the job worker - the argument of the applicant that they use their own material, hence, they should not be treated as job worker is not tenable under the provision of law. Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work) - fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly. Ruling:- The Activity of building and mounting of the body on the chassis provided by the principal under FOC challan w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration received by the Applicant is towards the manufacturing of the bus bodies using its own procured material and mounting of the body on the chassis supplied under FOC challan by the customers. The question that arise for consideration in the present application is whether the activity of building and mounting of the body on the chassis by the applicant will result in supply of goods under HSN 8707 or supply of services under HSN 9988? To examine the issue, the applicant had referred provision of section 2(68) and Schedule Il of the of the CGST and SGST Act. As per section 2(68) of the CGST and SGST Act, the term job work means; any treatment or process undertaken by a person on goods belonging to another registered per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are using their own inputs it should be considered as process of manufacturing and is not tenable as per the provision of the Act. In this connection, it is relevant to refer explanation provided under section 143 of the CGST/SGST Act, 2017 which is read as under: For purpose of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or job worker. As per the ratio of the judgement held in case of Prestige Engineering (India) Ltd vs CCE on Meerut [1994 (73) ELT 497 (SC)] = 1994 (9) TMI 66 - SUPREME COURT OF INDIA , addition or application of items by job worker would not detract from the nature and character of his work. GST law does not distinguis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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