Job work under Mega exemption notification :

Carrying out an intermediate production process as job work in relation to –

(a) agriculture, printing or textile processing;

(b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act, 1985;

(c) any goods excluding alcoholic liquor for human consumption on which appropriate duty is payable by the principal manufacturer; or

(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of Rs 150 lakh in a financial year subject to the condition that such aggregate value had not exceeded Rs 150 lakh rupees during the preceding financial year

is exempt from service tax.

1. Appropriate duty means duty payable on manufacture or production under a Central Act or a State Act, but shall not include ‘Nil‘ rate of duty or duty wholly exempt. 2. Principal manufacturer means any person who gets goods manufactured or processed on his account from another person.

Paddy milled into rice, on job work basis is exempt from service tax since such milling of paddy is an intermediate production process in relation to agriculture [Circular No.177/03/2014 ST dated 17.02.2014].