Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 24 March 2016
The value of clearances under central excise is not equal to turnover. Ownership of goods are not important. If a job worker converts a product from A to B then he is the manufacturer liable for duty of excise on either the raw material cost + JW charges ( if goods otbe captively soumed) or on the sale price of the cusotmer ( Rule 10A of vlaution rules)
Exemption however is available under Not. 214/86 ( + others for / from specified products/ concern) where the principal takes on the payment of duty. Very importantly if doucmentation from the raw mkaterial sender is not available duty has to be paid on the sale price of the RM supplier.
However if 1.6 crores in your case is under Not 214/86 or similar notification with documentation and othe rmanufacture is 90 Lakhs then till 150 Lkahs there is no liability.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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