Classification of supply—Job work—In the instant application question raised before authority is that—
whether dispatch of those consumable materials is to be treated as supply from the principal to the job worker if they are not returned within the time allowed under section 143(1)(a) of the GST Act.

The Applicant sends steel structures for galvanising to a job worker along with furnace oil, zinc, nickel that are to be consumed in the galvanizing process.

Held that— The goods that are used up in the galvanising process cannot be separated from the galvanised goods. The meaning attributed to ‘inputs’ in the Explanation to section 143 takes care of the difference between the inputs sent to the job-worker and the goods returned after some intermediate treatment/process like galvanisation that may exhaust some of the inputs sent out. It expands the meaning of ‘inputs’ to the intermediate goods that include, as embedded, attached or consumed, the inputs that are exhausted in the process of manufacturing the intermediate goods. So, the zinc, furnace oil or nickel exhausted in the process of galvanising need not be physically returned. If the galvanized structures are returned that will be sufficient compliance of section 143(1)(a) of the GST Act.

Ruling— As the goods like furnace oil, zinc etc - consumed in the process of galvanising – are inseparable from the galvanized goods, they should not be treated as supply in terms of section 143(3) of the GST Act, provided they have been entirely used up in the process of galvanising.[AUTHORITY FOR ADVANCE RULING, WEST BENGAL] [M/s. Ratan Projects And Engineering Co Private Limited][2019] 10 TAXLOK.COM 037 (AAR-WB)