Case nº Ruling No. AAR/ST/24/2016 in Application No. AAR/44/ST/16/2015 of AAR Cases, July 22, 2016 (case In Re : Sarkar and Sen Company Vs)
Judge | For Appellant: Shri Ranjan Khanna, Authorised Representative |
President | V.S. Sirpurkar, Chairman, S/Shri S.S. Rana and R.S. Shukla, Members |
Resolution Date | July 22, 2016 |
Issuing Organization | AAR Cases |
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Ruling:
1. M/s. Sarkar & Sen Company (hereinafter also referred to as applicant), a labour contractor, proposes to undertake job work for M/s. Nipha Exports (P) Ltd. - a manufacturer, on contract basis at the rate of Rs. 2,000/- per "Jute Loom Machine Assembly" at the premises of said M/s. Nipha Exports. For this, Agreement dated 12-6-2015 with respect to job contract between the applicant and M/s. Nipha Exports (P) Ltd. has been submitted by the applicant. 2. The question raised by the applicant for ruling by this Authority is as under: Whether applicant is eligible for exemption from payment of Service Tax on job work undertaken inside the factory of the manufacturer as per Notification No. 25/2012-S.T., dated 20-6-2012, as amended 3. Notification No. 25/2012-S.T., dated 20-6-2012, as amended vide Notification No. 6/2015, dated 1-3-2015 inter alia exempts following taxable service from the whole of the service tax leviable thereunder Section 66B of the Finance Act, 1994. 30. Carrying out an intermediate production process as job work in relation to - (c) any goods excluding alcoholic liquors for human consumption on which appropriate duty is payable by the principal manufacturer; 4. Further, sub-clause 2(z) of said notification defines "principal manufacturer" as under: 2. Definitions. - For the purpose of this notification, unless the context otherwise requires, - (z) "principal manufacturer" means any person who gets goods manufactured or processed on his own account from another person. 5. In order to ascertain the applicability of Notification No. 25/2012-S.T., Commissioner of Central Excise in-charge of M/s. Nipha Exports (P) Ltd. was asked for a report in this connection, who informed that M/s. Nipha Exports (P) Ltd. is availing Central Excise duty exemption on the manufacture of "Jute Loom Machine" falling under Tariff Item 8448 32 20 vide Notification No. 12/2012-C.E., dated 17-3-2012 (S. No. 251). 6. As the ''principal manufacturer'', i.e., M/s. Nipha Exports (P) Ltd. is availing benefit of... |
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