Page 209 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] SUBJECT INDEX 679
Job work (Contd.)
Business Auxiliary Service and not exempted from Service Tax under
Notification Nos. 12/2012-S.T. and 25/2012-S.T. - When said activity
termed in show cause notice as manufacture, same cannot be considered
as service - Merely because an intermediate production process as job
work carried out in relation to any goods on which Central Excise duty
payable by principal manufacturer, such activity cannot be termed as an
exempted service when very same activity amounted to manufacture -
Demand of 5%/10% value of job work or reversal of Cenvat credit on
input services not sustainable - Rule 6(3) of Cenvat Credit Rules, 2004 —
National Plastic Technologies Ltd. v. Commr. of GST & C. Ex. (Tri. - Chennai) ......... 196
— Generation of electricity - Whether prime raw material of job worker i.e.,
steam coal, not inputs for principal for its final product, i.e., steel - Coal
proposed to be sent by principal to job work to be supplied back in form
of electricity, which in turn are used by principal to manufacture its final
products i.e. steel - Generation of power is one of business activities of
principal in terms of its memorandum of association and coal used for
such business activities would be qualified as input for principal -
Electricity can be generated on job work basis - Coal, despite being
consumed in process of the generation of electricity, thereby becoming
irretrievable, will not preclude proposed arrangement from being job
work transaction - Certificate of Cost Accountant testifying that coal and
other inputs constitutes a major cost i.e. more than 95% of the total cost of
materials that are required for generation of power, whereas cost towards
water and air would not exceed 0.5% of cost of inputs - Additions of
minor materials by job worker (such as air and water) not to alter nature
and character of underlying transaction - Such would still be considered
as a job work transaction - Contention that no bar on the involvement of
third person in the transportation of inputs from principal to job worker
and vice versa, sustainable - Presence of, and dependency on third party
regulator i.e. MSEDCL during transmission of electricity generated in
proposed job worker’s premises would not detract proposed
arrangement from being job work - Proposed arrangement of supply of
coal or any other inputs by principal to job worker for generation of
electricity to be construed as job work - No GST will be leviable on this
supply - Job work charges payable to job worker by principal to be
subjected to GST in terms of the provisions laid out in Notification No.
11/2017-C.T. (Rate) as amended - Observations of Appellate Authority
For Advance Ruling in 2018 (14) G.S.T.L. 571 (App. A.A.R. - GST)
repelled and revised - Decision of Authority for Advance Ruling in 2018
(13) G.S.T.L. 92 (A.A.R. - GST) reversed - Sections 2(48) and 143 of
Central Goods and Services Tax Act, 2017 — In Re : JSW Energy Limited (App.
A.A.R. - GST - Mah.) .................................. 456
Job worker transporting goods from his premises to depot of principal
manufacturer, matter referred to Larger Bench on issue whether credit of
outward GTA service admissible to job worker - See under CENVAT
CREDIT ....................................... 300
Joint Venture company granted 51% equity stake, demand under BAS not
sustainable - See under DEMAND ........................ 561
GST LAW TIMES  30th April 2020  209