Analysis of Entry Entry (f): Processes amounting to manufacture or production of goods in negative list :

Any process amounting to manufacture or production of goods shall not be taxable. Points to be noted

•  This entry covers manufacturing activity carried out on contract or job work basis, which does not involve transfer of title in goods, provided duties of excise are leviable on such processes under the Central Excise Act, 1944, the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 or any of the State Acts.
•  In other words, if Central Excise duty is leviable on a particular process, as the same amounts to manufacture, then such process would be covered in the negative list even if there is a central excise duty exemption for such process.
• However if central excise duty is wrongly paid on a certain process which does not amount to manufacture, with or without an intended benefit, it will not save the process on this ground and service tax would still be leviable on such process.

Process amounting to manufacture or production of goods means

(i) a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 or the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 or

(ii) any process amounting to manufacture of opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force [Section 65B(40)].