20 February 2010
Dear Experts, We are a Battery Manufacturing Unit, Register with Central Excise. We are using Lead Ingots for manufacturing of Batteries. During the assembly lead Ingots became to piece or dust. We are sending the piece or dust of Lead to our job worker. Job worker make it Lead Ingots and return to us. But due to burning loss they are sending 10% less whatever we have supplied. Now my question is for this we have to make any agreement with job worker? Kindly confirm me Thanks and regards, R.
20 February 2010
First of all work out the costing correctly making provisions for normal losses/ process loss and submit it to the excise authority under whose jurisdiction the unit is registered and get it approved then use Form 57F and keep necessary records as prescribed You must ensure that the input and output details for the materials are matched as per the cost details approved by the excise authority. Any agreement u make with anybody does not concern excise dept.
CAclubindia
