Uday Dhote's implications for the print industry

Entry No.30(a) of Notification No.25/2012-ST dated 20/06/2012, referred to as the “Mega Exemption Notification” (which supplements the Negative List in Sec-66D of the Finance Act), exempts from Service Tax liability, job works in printing (apart from agriculture and textile processing).

Prior to 06/07/2012 also, similar exemption from Service Tax was available to ‘printing job works, under Notification No.12/2012-ST dated 17/03/2012 and Not. No.14/2004-ST.

Moreover, the negative list u/s section 66D of the Finance Act  exempts “process amounting to manufacture or production of goods” from Service Tax – as they are excisable goods u/s 2(f) of the Central Excise Act, 1944. All processes/ production operations in printing “amount to manufacture”.

In the circumstances explained above, printing works contracts or job works are exempt from Service Tax liability and therefore further proceedings in the matter should not arise.