Conversion of Coal supplied in Electricity is Manufacture not Job work: AAAR Maharashtra

In re M/s JSW Energy Limited (GST AAAR Maharashtra) It was held that activity undertaken by M/s JEL to convert Coal, to be supplied by M/s JSL, in electricity is not covered under the definition of Job work in terms of the CGST Act. Since goods supplied by M/s JSL will be utilized by M/s JEL in manufacture of new commodity i.e. electricity (though attracting NIL rate of duty), the process is manufacture and the same will be considered as supply of goods and not service. Also Read AAR Ruling- Coal supply by JEL for power generation is deemed supply of goods: AAR FULL TEXT OF ORDER OF AUTHORITY...