Classification of Supply —The question raised by the Applicant is that whether mounting of Bus/ Truck Body by the job worker on the chassis supplied by the principle for which the applicant charged fabrication charges including cost of certain material that was consumed during the process of job work would be classified as supply of service under HSN 9988”.

Held that— In respect of the question raised by the applicant we hold that the supply towards provision of services in respect of activity of mounting/ fabrication of bodies on chassis provided by Customer should be treated as supply of bus or provision of services in respect of activity of mounting/fabrication of bus body on the chassis wherein the said activity of mounting/fabrication is outsourced to the Applicant by owner/provider of chassis, in no case the ownership of the chassis belongs to the applicant, hence in both cases it will be taxable under SAC 998881 - “Motor vehicle and trailer manufacturing services” and under entry no. 26(ii) as “Manufacturing services on physical inputs (goods) owned by other” it is taxable @ 18% .—V.E. Commercial Vehicles Limited, In Re… [2020] 25 TAXLOK.COM 091 (AAR-Madhya Pradesh)