Sending input from principal to the job workerfor processing is not a taxable supply : AAR | Kerala Authority of Advance Ruling in matter of M/S Bharat Petroleum Corporation Limited.
Below is the extract of Advance Ruling
In the light of the discussion above, we come to the conclusion that the transport of the inputs from principal for processing through pipe lines to the premises of job worker as well as ” return of processed goods after job work to the principal can’t be treated as taxable supply. Based on the observations stated above, the following rulings are issued:
i) The activity of the applicant of sending Regasified Liquefied Natural Gas (RLNG), De-Mineralized Water (DM Water), Hydrogen Rich off Gas and Raw water free of cost to Mis. Prodair Air Products Pvt. Ltd. For manufacture of Hydrogen, Nitrogen and Steam manufactured out of its amount to ‘job work’ as defined under Section 2(68) read with Section 143 of the CGST / KSGST Acts.

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