Taxability of job contracts

HARIDAS.P.R (Querist) 24 January 2013 This query is : Resolved
we are a firm engaged in the work contract execution for another firm.we manufacture animal feed in our plant at fixed but revisible rate per metric tonne and the other firm take supply using their own vehicle from our factory premises.this is going on for the last 8 years.My question is whether this job contract manufacture is liable to service tax?or is it an activity still in the Negative list?

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ajay sethi (Expert) 24 January 2013
commercial query . you can easily afford legal fees

HARIDAS.P.R (Querist) 24 January 2013
Mr.Ajay sethi,i have got shaky legal advice in this regard.This is not something purely commercial.Manufacture in the Negative list till last finance bil;2012.Now some new notification has come.i only need to got through it.Does'nt need to waste time posting queries.But only thought.being experts.u would be in a better position to advise..Please avoide being too tricky...

C. P. CHUGH (Expert) 25 January 2013
list Under the Negative List all work contracts which result into a final product on which excise duty is paid/payable are exmept, rest are subject to Service Tax.

HARIDAS.P.R (Querist) 26 January 2013
chug sir has given precise advice.its clear concise and up to the point.I have benefited immensly from lawyers club advices.one expert told me to move CBDT to get delay condoned in filing income tax returns and we moved CBDT which condoned delay in filing return and directed assmt.commissioner to allow carry forward of loss to the tune of 2.60 crores!