TMI Blog2020 (1) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t an intermediate production process as job work in relation to - (a) agriculture, printing or textile processing; (b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act, 1985 (5 of 1986); (c) any goods on which appropriate duty is payable by the principal manufacturer; or The appellant s contention is that the intermediate production process service under job work is exempted if the goods discharge appropriate duty in the hands of principal manufacturer. According to the appellant, the principal manufacturer M/s Aero Club has discharged their duty liability in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .R. appearing for the Revenue, we find 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, we note that 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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