TMI BlogCenvat Credit of Service Tax paid on Job Work charges by job workerX X X X Extracts X X X X X X X X Extracts X X X X ..... onents on job work basis for the principal manufacturers. They are of the understanding that the services provided by them are intermediate production processes not amounting to manufacture and are liable to service tax. The field officers are issuing show cause notices on the grounds that the activity of carrying out an intermediate production process as job work in relation to any goods, on which appropriate duty is payable by the principal manufacturer has been exempted from payment of service tax under Notification No. 25/2012-ST dated 20.06.2012, and it is mandatory for the job worker to claim said exemption and accordingly they can not charge service tax on the job work charges. In this regard, the Hon ble High Court of K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication is mandatory and the service tax is exempted on such job works. However, if in terms of notification no.25/2012-ST dated 20.06.2012, service tax is being charged on an intermediate process (not amounting to manufacture) by such a job worker, credit of such service tax would be available to the principal manufacturer. All the Trade Associations are requested to bring the contents of this Trade Notice to the attention of their members, the trade, industry and everyone concerned with the said Scheme. (Yogendra Garg) Commissioner OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, GURGAON-I, PLOT NO-36 37, SECTOR-32, GURGAON, HARYANA C.No. IV(16) HQ Tech/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise duty, then exemption of service tax would be available to the job worker. In case service tax is being charged on an intermediate process (not amounting to manufacture) by such a job worker, credit of such service tax would be available to the principal manufacturer. Further, Trade Notice No. 13/2016 dated 21.11.2016 has also been issued by this Commissionerate on the issue. Copy of the same enclosed for kind perusal. This issues with the approval of Commissioner. Yours fathfully, (R R Bahl) Joint Commissioner - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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