Job work by 3rd party

This query is : Resolved

CA Kapil Verma (Querist)
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20 February 2016 Company A is a principal manufacturer which has given a job work to company B. Company B receives material from company A, processes the material and returns the processed Material to company A.

In the process it charges a processing fee to company A. Company A has given undertaking under excise notification 214/86-CE to the B's jurisdictional AC/DC that they would pay excise during the final removal of goods from A's factory.So company B doesn't pay excise on job work.

Now company B wants to further sub-contract this job work to company C under which company C would collect materiel from company B which in turn collects it from company A, process the material and sends it back to company B.

Company B further process and sends it back to company A. In the process, company C charges a fee from company B.

1. Now whether Company C need to pay duty ?

2.or can get undertaking under excise notification 214/86-CE from Company B's.

Thanks.