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Documents requirement

pavazh (Cost Accountant) (68 Points)

08 July 2014

Dear all we are manufactured some parts and fixtures that all procure under jobwork now send out the material to quality checking purposes as per supplier instructions but i want to know while at the time of clearing excise will arise to send out quality checking?because once quality approve then only supplier will accept the parts and fixtures kindly say what documents required under excise reply as soon as possible thanks in advance

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2 Replies

Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 08 July 2014

Dear Pavaz,

You need not pay excise duty on removals sent for quality/testing purpose. But however you may need to obtain permission from commissioner of excise.

Extract of Rule"

RULE [16C. Special procedure for removal of excisable goods for carrying out certain processes. — The Commissioner of Central Excise may, by special order and subject to such conditions as may be specified by him, permit a manufacturer to remove excisable goods manufactured in his factory, without payment of duty, for carrying out tests or any other process not amounting to manufacture, to any other premises, whether or not registered, and after carrying out such tests or any such other process may allow, -

(a) bringing back such goods to the said factory without payment of duty, for subsequent clearance for home consumption or export, as the case may be, or

(b) removal of such goods from the said other premises, for home consumption on payment of duty leviable thereon or without payment of duty for export, as the case may be :

Provided that this rule shall not apply to the goods known as “prototypes” which are sent out for trial or development test.]"

And one more way out for this situation is " you can also treat the same as sending for jobwork (sending for quality test could be treated as jobwork as decided in many caselaws) hence you please take one declaration under Notification 214/86 C.E (NT).

PFA The format

Attached File : 288237 1335414 declaration under jobworkk.doc downloaded: 157 times