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Processing of waste sand with heat treatment (Thermal Plant) & various other set of small procedures which makes it reusable is supply of goods and not job work

Classification of supply— In the instant case, the applicant receives waste sand which is processed with heat treatment (Thermal Plant) & various other set of small procedures and is reclaimed and made re-usable. The first question raised by the applicant is whether the activity of Applicant is Supply of Goods or Supply of Job Work Services. The second question raised by the applicant is “The used waste sand which is of the value ‘Nil’ (Refer separate Valuation Certificate by Engineer) will have any impact on valuation? Held that— we find that additional application of minor items is permissible in job work. In the subject case, the applicant has categorically stated that their activity is an activity of manufacture of a new commodity by using its own raw material and skill and labour as well as the input material supplied, value of which is NIL. Therefore in our opinion, the subject transaction undertaken is a supply of goods, i.e. sale of ready to use sand for the foundry industry and not supply of job work services. We are of the opinion that in cases like in the subject matter, the value of inward supply will always have a bearing on the value of outward supply. In the subject case, the applicant has themselves admitted that the value of input used sand is “NIL” and the same has been accepted by the jurisdictional office also and not disputed.