[TO BE PUBLISHED IN THE GAZETTE OF INDIA,
EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 12th November,
2009
Notification No. 42/2009-Service
Tax
G.S.R. (E).- In exercise of the powers conferred by
sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the Finance Act), the Central Government, on being
satisfied that it is necessary in the public interest so to do, hereby exempts
the taxable service specified in sub-clause (zzb) of clause (105) of section 65
of the Finance Act, provided by a person
(hereinafter called the ‘service provider’) to any other person
(hereinafter called the ‘service receiver’), in relation to one or more of the specified
process during the course of manufacture of parts of
cycles or sewing machines, subject to the following conditions, namely:-
a) the aggregate value of taxable service in
relation to one or more of the specified process provided by a service provider,
does not exceed rupees one hundred and fifty lakhs during the preceding
financial year;
b) the exemption shall
be restricted to the first clearances, wherein the aggregate value of taxable
service in relation to one or more of the specified process provided by a service provider does not exceed rupees one
hundred and fifty lakhs, made on or after the 1st day of April in
any financial year; and
c) where the service
provider also undertakes one or more of the specified process in relation to
manufacture of parts or whole of goods leviable to Central Excise duty, such
service provider shall maintain separate accounts of receipt, production and clearance
of exempted and dutiable goods and services.
2. Notwithstanding
anything contained in sub-para (b), exemption shall be restricted to the
clearances, wherein the aggregate value of taxable service in relation to one
or more of the specified process provided by a service provider, does not
exceed rupees sixty three lakhs during
the remaining part of the current financial year.
Explanation.- For the
purposes of this notification, “specified process” means electroplating, zinc
plating, anodizing, heat treatment, powder coating, painting including spray
painting or auto black.
[F. No. 332/28/2009-TRU]
(Prashant Kumar)
Under Secretary to the Government of India