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The proposed arrangement of supply of coal or any other inputs by the principal i.e. JSL to the Appellant (job worker) i.e. JEL for generation of electricity will be construed as job work. Accordingly, no GST will be leviable on this supply.

Job Work The present appeal has been preferred against the advance ruling pronounced by AAR Maharashtra.
JSW steel limited is engaged in manufacture and supply of steel. The manufacturing activity undertaken by JSL requires power on a continuous and dedicated basis. For the said purpose, JSL and the Appellant propose to enter into an arrangement for the purpose of supply of coal and processing of the same into power for captive use by JSL.

The order has been passed by AAR holding that the proposed transaction amounts to manufacture and therefore it would not qualify as ‘job work’ under GST.

Held that— We, hereby, hold that the proposed arrangement of supply of coal or any other inputs by the principal i.e. JSL to the Appellant i.e. JEL for generation of electricity will be construed as job work. Accordingly, no GST will be leviable on this supply. Finally, the job work charges payable to JEL by JSL will be subjected to GST in terms of the provisions laid out in Notification No.11/2017-C.T. (Rate) dated 28.06.2017 as amended by various subsequent notifications.—Jsw Energy Ltd., In Re… [2020] 20 TAXLOK.COM 159 (AAAR-Maharashtra)