Ours is manufacturing industry with a turnover of 70 crores. I am looking for your help and solve my query. 1. We have a 3 units in diferent area under different central excise ranges . location. A.B.C
A is registered with central excise and cleared the goods on payment of duty.
B & C is our extension units which is not registered under central excise duty . At B, C Places we are doing only manufacturing for A. At B,C are not selling any items nor doing any job work to other customers. There is no sales nor job work at B & C. Our general practice is we are sending the raw material to B & C on 4(5) challan for job work purpose. After manufacturing at B&C the material is comming back to at A and clearing the goods from A on payment of duty. Now my querry is.
A).Whether B & C to be registered in Central Excise or should given any declaration in their jurisdictional. (As per my knowledge no registration required because we are not selling any item at B&C places) B).What are the records to be maintain by B&C.
C) Proceedures now we are following is correct or wrong.
Please clarify urgently basis
Thanks for experts giving such a good guidelines to the users. CA club is very good site.
25 August 2012
Your procedure is correct. Please follow all the procedure laid down for Job Work including records to be maintained.
You may file a declaration / intimation to the respective Central Excise Authorities, of B & C units that only Job Work activities are under taken and no sales transactions are being done. Also In future, if you start sales transactions, at B & C units you will apply and get excise registration
25 August 2012
in my view all the units has to get registered, as manufacturing activity is also carried there, so who will ensure that no goods are cleared except to A?
also what about the scrap generated during the job work? are the formalities maintained and duty paid on scrap sale? to sale the scrap after payment of duty , unit B &C need registration.
if found any clearance from B&C department will club the same with A and initiate the case of evasion on all three.
19 July 2014
We are not clearing any goods from B&C.. And scrap generated at the time of job work bringing back to unit A and clearing on payment of duty.
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