Manufacturing of industrial gases by treatment of goods amounts to ‘Job Work’

Categories: Advance Ruling
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The applicant M/s. INOX Air Products Private Limited is engaged in the business of manufacture and supply of industrial gases, including Oxygen, Nitrogen, Argon etc. M/s. Essar Steel India Limited is in the business of manufacture and supply of steel and has one of its steel plants at Hazira, Gujarat. M/s. Essar requires certain quantities of Oxygen, Nitrogen and Argon on a continuous and dedicated basis, to manufacture steel at their Steel Plant. Accordingly, the applicant has entered into a Job Work Agreement dated 07.02.2014 with M/s. Essar, in terms of which the applicant acts as a job worker for M/s. Essar.

Whether the activity undertaken by the applicant amounts to “Job Work” as defined under Section 2(68) of the Central Goods and Services Tax Act, 2017 , Held yes

What is the value on which the applicant is liable to pay GST?

Ruling: The applicant is liable to pay Goods and Services Tax on the value of supply determined under Section 15 (1) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017.

Citation: [2018] 94 taxmann.com 144 (AAR-GUJARAT)

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