EXPORT UNDER LUT/JOB WORK PROCECURE

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Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2009 Dear experts

(1)In case of export under LUT it is necessary to maintained any bond register/or any other register?if yes what is the column to be maintained?how to treat transaction?

(2)If we are sending Inputs from factory premisese to job worker for further process and returned processed material to us it is necessary to get permission from excise authority?

Request you to give proper guideline in this matter.

Thanks
Sandeep

ANIL JANGID

ANIL JANGID (Expert)
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22 December 2009 (1) You should maintain bond register,credit the bond amount and debit the duty after shifment you can credit the duty,performa of bond register available central excise manaual.
(2)Where the goods are manufactured during job work, the job worker would be liable to pay duty of excise on the goods so manufactured unless the principal manufacturer who has supplied him the goods for job work, furnishes a declaration under Notification 214/86 dated 25.03.1986 which exempts goods manufactured by a job worker from duty of excise provided the said goods after job work are returned to the principal or cleared for export or cleared for home consumption on payment of duty of excise. Removals for job work under Rule 4(5) (a) of the Cenvat credit rules presume that the declaration under 214/86 is met. Where the goods are returned to the principal, the principal should either clear it on payment of duty or use it in his manufacturing process which should result in a dutiable product being manufactured. The declaration as stated above should be given to the Assistant Commissioner of Central Excise who has jurisdiction over the factory of the job worker.

SANJAY JAIN

SANJAY JAIN (Expert)
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23 December 2009 There is no Performa prescribed for the maintenance of Letter of Undertaking. Though a simple account is required to satisfy the Assistant Commissioner to the effect at the time of discharge that goods has been exported with in time and duty or interest, if any have been paid.

Secondly in the present rules no permission is required to remove the goods for carrying out job work. However the activities in job work are amounts to manufacture, then an undertaking is to be filed to the Assistant Commissioner having jurisdiction over the job worker factory for enabling him to return goods without payment of duty in terms of the Notification No. 214/86-CE dated 25.03.1986.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2009 Thank you very much to Mr.Jangid and Mr.Sanjay Jain.

I want more clarification regarding jobwork permission.If party is not registered in excise dept.and no ECC no (probability of limited turnover) is it necessary to find undertaking ?

will be thankfull for clarification this matter.

Thanks
Samdeep