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Urgent Help Required (Job Work Challan)

Nikhil Kumar (Asst. Manager) (29 Points)

08 July 2011

Hi All,

I need your urgent help on the below issue.

We have supplied some cable assembly to one of our customer. It was later found that out of supllied items some went faulty at site. After investigation, we found that the fault occurs due to mishandling. Now, customer is ready to pay the repair charges and since we are not a registered company under service tax we are charging them ED & CST. Our finance has told us that customer need to sent material with Job Work Challan 4(5)a when we contacted customer they are denying to provide the same since they are not registered for. However they are ready to provide RGP(returnable gate pass) to us mentioning cables are sent for repairing but our finance is not accepting the same. Pl suggest how to solve this problem.

Regards,

Nikhil Kumar

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1 Replies

Naresh Patil (Jr. Officer ( Custom & Excise )) (21 Points)
Replied 04 September 2012

Dear Nikhil,

Please ask to your customer for sending this material his invoice on duty payment. if yes u can received same material in your factory under rule 16 of Excise rule 2002.

Rule 16.	Credit of duty on goods brought to the factory. -
	(1)	Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules.
	(2)	If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be.
	(3)	If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner.