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Jobwork

04 March 2010

Dear Friends

We are a manufacturing unit & have a jobwork of our own, but if a customer send the material back for modification with it's jobwork challan, please let me know the procedure to return the material.

Awaiting your reply.

Jigar Thakkar

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4 Replies

Rajesh (Artical) (59 Points)
Replied 15 March 2010

As per Rule 16(2), if any manufacturer receives back the goods for further processing then he can avail credit of the goods on the basis of self Invoice. and there after process the goods.

Now, there are two situations:

1. The further processing of goods amounts to Manufacture-

you are required to pay the excise duty on Goods calculated as per the provisions as applicable on the date of re-removal of goods.

2. The further processing of goods doesn't amounts to manufacture-

You are required to pay an Amount equal to the Credit taken above

Thanks & Regards

Rajesh Ahuja

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Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 16 March 2010

The goods will be return back on the job work challan within the 180 days from the receipt of the goods. Rule 16 will be applicable only in the case where goods are returned to the principle manufacturer who originally manufactured the goods. Here I don't agree with the view of Mr. Rajesh.

Himanshu (Chief Accountant) (96 Points)
Replied 25 March 2010

Hello Jigar,

If your customer sent rejection material through by Excise challan (Without charging Excise duty) you take this quantityu in your Ecise register 161-V & Send it return after repairing & any proceess doing the same QUANTITY will be sent to your cusomer is compulsory by issue a very simple Debit Note (Without charging Excise duty).

If your customer sent rejection material making a Invoice under rule 11, than You credit the CENVAT in your CENVAT register PArt-II & Quantity in CENVAT Part-I, & this quanity is issue to your work in progress register & after make fresh material you sent your customer through sales invoice under rule 11.

if any doubts pl. contact on mail id hemujmehta @ yahoo.co.in

Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
Replied 25 March 2010

Dear

Rule 16 is applicable only when goods is returned . Duty paid goods will come on the basis of either party will raise invoice or the same excise invoice which was issued to party earlier.

job work is different issue, party will raise j/w challan under rule 4 5 (a) , it will be back within 180 days.