Classification of service— In the instant case, the applicant sought advance ruling in respect of the following questions— 

(a) Whether sending of Naphtha ,DM water, Power, Cooling water, service water and instrument air by the Applicant to Praxair and receiving back of Hydrogen gas. Nitrogen gas and HP steam under the contract will fall under ‘job work’ in terms of section 2(68) of Central Goods and Service Tax Act,2017 (CGST Act) and Odisha Goods and Service Tax Act, 2017 (OGST Act).

(b) Whether all the payments under the contract will attract GS T as applicable to Job Work?

The main issue involved in this case is whether sending of Raw Materials (Naphtha, DM water, Power, Cooling water, service water and instrument air) for manufacture of Industrial Gas (i.e Hydrogen gas, Nitrogen gas and HP steam) by the Applicant in Ms Praxair and receiving back of the said Industrial Gas under the contract will fall under ‘job work’ in terms of section 2(68) of Central Goods and Service Tax Act.2017 and Odisha Goods and Service Tax Act,2017.

It would be relevant to note that the production ‘Plant’ has been leased to the applicant on a monthly rent basis. The physical and peaceful possession of the production plant has been handed over to the applicant and for that the applicant is paying Lease/Rental and O&M charges to M/s Praxair. The Plant is no more under the control and possession of M/s Praxair. Therefore, the applicant’s claim that M/s Praxair uses its Plant to produce Hydrogen and Nitrogen Gas by using the inputs provided by the applicant may not be correct. Therefore, the concept of ‘Job Work’ is not present in the entire transaction.

Held that— 

(i) The activities being undertaken in the applicant’s premises/production plant do not qualify for ‘Job Work’ under section 2(68) of Central Goods and Service Tax Act.2017and Odisha Goods and Service Tax Act,2017 and Section 143 of the said Acts.

(ii) The applicant’s next question “Whether all the payments under the contract will attract GST as applicable to Job Work?”is not maintainable.