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Job work - excise duty applicability

Ritzz (CA Final - Article ) (365 Points)

16 August 2013

Hi Friends

In case a company outsources the work (of manufacture) on job work basis. How will the excise duty be payable and by whom??

Regards

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6 Replies

vikas (student ) (139 Points)
Replied 16 August 2013

HIi dear

excise duty paid by raw material supplier (RMS)

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Ritzz (CA Final - Article ) (365 Points)
Replied 16 August 2013

Thanks for the reply. But I still have a doubt.

What if the Raw Materials are supplied to the Job Worker by the firm?

And what if the Job Worker himself procures Raw Materials on behalf of the firm?

Who would be liable to Excise duty in such cases?

Regards

Ritzz (CA Final - Article ) (365 Points)
Replied 16 August 2013

Hi Thaks for the reply. But I still have a doubt. What if the Raw Materials are supplied to the Job Worker by the firm? And what if the Job Worker himself procures Raw Materials on behalf of the firm? Who would be liable to Excise duty in such cases? Regards

Ritzz (CA Final - Article ) (365 Points)
Replied 16 August 2013

Can anyone please clarify the doubts/queries??

Regards

Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
Replied 20 August 2013

sir

it may be, firm can send the materials directly to your job worker for safe transportation. no matter, after getting party mut inform you the ame. you will collect the doc. and take credit as it is in the name of you. afer taking credit you will raise job work challan under rule 4(5) a in the name of your job worker. . after completion of the job party will send the goods along with waste within 180 days. then you will reced the goods and will do further process and will enter it into your production register and RG-1, pay the duty , raise invoice and despatch . simple.

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Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 21 August 2013

The liability to pay duty always lies on the principal manufacturer and job worker is exempted from payment of Excise duty if the same is being paid by the principal manufacturer.However in some cases the final product can also be cleared from job worker premises,but it requires permission from the department and duty is to be paid by the job worker.

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