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Goods removed for job work

kapil (article cleark) (28 Points)

15 June 2012

Dear All,

As per Cenvat rules, goods can be moved for further process to the premises of Job worker without payment of duty, however the same should be returned back within period of 180 days. If such removed goods not received within period of 180 days, duty is required to be paid.

My Question :-

Is there any provision under which extention can be asked over and above 180 days???

If yes, whts is the procedure to get extention

Pls help on above issue

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6 Replies

Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 16 June 2012

Prepared the taxable invoice and pay the excise duty on that inputs within 180 days then you can put on hold again many days and second option is re-send the inputs to jobwork premises again 180 days.

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HS Negi (Senior Executive- F&A) (590 Points)
Replied 19 June 2012

Dear Mr. Arunji

For this, can we debit the input content of duty from our Part-2 Register of material supplied and recredit the same when recpt actually. Or it is mandatory to raise the invoice actually when the goods lying at Jobworker. Since goods lying at Job Worker place is our property.

Please clarify .

Regards

HS Negi

LALITH (acCOUNTS OFFICER) (43 Points)
Replied 11 July 2012

we are manufacturer.We received material for jobwork from the supplier, after the job work the goods directly sent to the final customer, not to the supplier.in such case whose responsibility to pay the duty,if the the jobworker,on which value he has to pay duty? can the jobworker take credit on the goods supplied by the supplier..

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

If the job worker sends the final product directly to the customer service tax will be imposed on the job work if the activity does not relate to manufacture as specified in the tariff of the said product. Else excise duty has to be paid by the jobworker. In this case excise duty has to be paid by the manufacturer on the transaction value i.e on the amount of sale as booked in his books of accounts as well as excise duty has to be paid by the job worker on the amount of work done done by him. He will also be entitled to take Cenvat Credit on the inputs supplied by the supplier, provided the supplier passes on the credit via actual excise invoice.

LALITH (acCOUNTS OFFICER) (43 Points)
Replied 12 July 2012

thanks for the infor...still a small confusion,after the completion of the job work,if the goods sent back to the principal manufactuerer not to the final customer at such point also do the jobworker has to pay excise duty?

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Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 13 July 2012

No it is exempt, provided that the goods are sent from the principal manufacturer to the said job worker by satisfying the prescribed conditions as stipulated in this regard.