Activity of job work: Whether supply of manpower service or manufacture?

A manufacturer essentially has some capital goods to manufacture final products using some inputs. If the contractor A is using the capital goods and inputs in the factory of actual manufactures (in your case B) then how can A said to be a manufacturer without having any plant and machinery? The article writers are appearing to have inventing a new type of manufacturers without having any premises and capital goods. What about the job work provisions of Rule 16 and Rule 4(5) or 4(6) of Cenvat provisions? How will the A clear the goods manufactured by him, whether he will raise an invoice or return the goods on a challan (in this case no challan was issued by B for sending goods for job work) or any other documents. Another point is if A is the manufacturer and final products cleared by B are exempt then whether A has to pay duty as he is doing job work for exempted final products. What about valuation.

deepak joshi 04/02/2016