Notification 214/86

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shoeb parwaiz (Querist)
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31 May 2012 Dear All,

I wanna know can job work be started before getting declaration under notification no.214/86 from the supplier of material.

For Example: Mr.X is a job worker & do job for Mr.A & all Raw material is supplied by Mr.A to Mr.X,Mr. A has not given any declaration under notification no.214/86 to Mr.X. Although Mr.X pays excise duty on Final Product. In this situation should Mr.X do job work or he should stop job work unless the declaration is received under notification no.214/86.

Regards

NILESHKUMAR

NILESHKUMAR (Expert)
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02 June 2012 Notification NO. 214/1986 provides exemption for clearance of semifinished goods/raw material or intermediate goods for further process in the factory of job worker.

The condition is resultnat finsihed goods after job work will be cleared on payment of duty, subject to indeminify the principle manufacture who has sent inputs to the job work by way of submitting undertaking to the jurisdictional Divisional officer of the Central Excise.

It is alsway ideal to submit such declaration/undertaking in well advance before starting Job work. If the the same is not yet filed please submit without any further delay.