Same unit in different places and sale in only one place

This query is : Resolved

mallesham ausali (Querist)
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18 September 2012 Dear experts, thanks for your support for giving your valuable suggestions.

Please clarify the following procedure for job work for same unit.
We have a company’s Called "A", “B”, “C” in same names all are "Manufacturing units".
"A"= is having under separate excise division “B” and “C” also having under separate excise division as well as excise range.
1. For “A" = is excise registered company and we are availing full cenvat benefit and clearing the goods with full rate of duty. And we are not SSI our turnover is more than 50 cores.

2. At "A" due to place congest, we have stared the companies at “B” & “C” in other Places and we have not taken any central excise registration for “B” & “C” because we are not clearing any goods at the place of “B” & “C” .

“B & “C” is the extension of “A” and doing job work for only “A”. After completion of job work activity at “B & C” the same we are bringing back to “A” and clearing from “A” with full payment of duty.

3. For “B” & “C” we have submitted “4” ANNEXURE-4 [See rule 9 of the Central Excise (No.2), Rules, 2001 read with Notification No. 36/2001 – C.E. (N.T)] . As per one of central excise range persons advice.
4. We are sending material to “B” & “C” under central excise challan (4) 5 and the generated scrap at “B” & “C” Bringing back at “A” and clearing on payment of duty from “A”.

Now my questions are.

1. “b” & “C” should be registered or only declaration “4” is enough . (We are not clearing nor doing any job work for other units we do not have even sales or job work invoice at the place of “b” & “c” . Hence registration is required or not ??

2. What are the procedures we are following is correct or not ??

3. If any other procedures for different units under same name to be followed ??

4. If registration done at “B” & “C” years together we should file Nil return ?? because we are not sold any item at “b” & “c”
Please give your advice point wise enable me to understand properly and follow the rules. Your early action will be most appreciated. Thanks in advance for experts who is spending their precious time to give the advices

Amol S Joglekar

Amol S Joglekar (Expert)
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18 September 2012 The procedure given by the RANGE person is right. You need to get the PREMISES B and C added on to the unit A's registration.

mallesham ausali

mallesham ausali (Querist)
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18 September 2012 sir,

I have asked point wise please clarify point wise enable me to understand clearly. plz.

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U S Sharma

U S Sharma (Expert)
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19 September 2012 as you are non ssi assesee , you are not permitted to have any such unit without holding regn of Excise, you have to get yourself registered with excise and club the clearance (if any from sister concerns) of all units

1. you have to obtain registration of all such units and your status would be MLU (multi location unit)

2. as job work and their documents are not authentic, any goods caught on way at the time of removal from such sister concerns, may dtag you to trouble as department would frame "wilfully clearance of dutiable goods withouut payment of duty, on forged job work challan, and evasion prone", so the registration is the only solution.

3. after regn, you file nil return or clear the goods after paying duty, does not matter, as the RG-1 entry is master for excise records to fix the duty liability,