Job work by a excisable unit for non excisable unit

This query is : Resolved

mayank (Querist)
Follow

03 July 2008 Sir,
When a excisable unit does job work for a non excisable unit how the transaction will be calculated?
Eg: E does job work N. E gets the material from N (procured by N for Rs. 100) and sends it back to N for Rs. 150. N sells the final product for Rs. 200. What will be the transaction value in this case for levying excise duty?

CA Anand Sarda

CA Anand Sarda (Expert)
Follow

03 July 2008 How can N sells for 200 When his cost itself is Rs.250 (100+150)

In the given case transaction value will be Rs.250. The transaction value should include the material cost(whether purchased by him on his own account or supplied by other.