Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
25 January 2010Dear Sir,
We send a material to J/W by raising Challan under Rule 4 (5) a , but party not able to do the job , then we want to send the same to another job worker , Is this required to get back the materials to my factory or we can send directly to another Job worker . What is the procedure?
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 29 January 2010
No need to get back the materials to factory. you can send the goods to another job worker. There is no specific provision, but there is no specific prohibition either. The rule only says that goods should be 'returned'. It does not say that goods should be 'directly returned'.
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 29 January 2010
Rule 4(5) of the Cenvat Credit Rule says that after the job work goods should be return in the factory which manufactures the final products. Rule does not provide procedure for sending the goods for another job worker. Since goods has been send under jobwork challan, it can be send to another job worker through a fresh challan cancelling the earlier one.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 29 January 2010
The materials can move under a fresh challan where the movement from JW 1 to JW 2 is mentioned. That shouldbe sufficient compliance.
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