Authority for Advance Ruling — Job work of Rubber backed Coir Mats – The applicant, a job worker engaged in production of Rubber backed and rubber edged coir mats and polypropylene mats of various designs and size as required by the principal on the materials provided by the principal. The materials like coir mats and mattings covered under HSN 5702 and tufted carpets covered under HSN 5703 are supplied by the principal for executing job works along with moulds in the required designs. The rubber compound required for the rubber backing and edging is prepared in a mixing mill. The petitioner sought an advance ruling as to (i) whether the process and treatment carried out on the goods belonging to the principal and made available by the principal amounts to job work (ii) whether the activity of job work carried out on goods falling under Chapter heading 5702 and 5703 is liable to CGST at the rate of 2.5% under Entry No.26 (i)(b), Notification No. 11/2017-CT(R) dated 28.06.2017.
Held that:- The Hon’ble Authority for Advance Ruling ruled out in respect of 1st Question that the Manufacturing services on physical inputs owned by the principal is treated as service by way of job work and is covered under SAC 9988, in respect of 2nd Question held that the activity of job work carried out on the materials supplied by the principal falling under HSN 5702 & 5703 are taxable @ 2.5% CGST and 2.5% SGST vide Entry No. 26(i)(b), Notification No.11/2017-CT (Rate) & SRO.No.370/2017.—Irene Rubbers, In Re…. [2019] 11 TAXLOK.COM 058 (AAR-Kerala)