No Service Tax Payable on Ex-Gratia Job Charges: CESTAT Allahabad

K. N. Food Industries Pvt. Ltd. Vs Commissioner of CGST  & Central Excise (CESTAT Allahabad) The CESTAT Allahabad considered an appeal involving the levy of service tax on ex-gratia job charges received by a job worker manufacturing confectionery on behalf of a principal manufacturer. Under the manufacturing agreement, the principal supplied the raw materials, while the appellant manufactured the goods and cleared them on payment of Central Excise duty based on the maximum retail price declared by the principal. The appellant received agreed job charges on a per kilogram basis. However, w...