Today we are discussing on Procedure of removal of excisable goods from the Job worker or goods sent to the job work for processing and after that remove from the Principal manufacturer factory.
Removal Of Excisable Goods From The Premises Of Job Worker
Can a principal manufacturer remove the goods manufactured on Job basis directly from the premises of job worker?
Yes, he can transfer the goods after taking permission from the Deputy/Assistant Commissioner.
As per Rule 4(6) of the Cenvat Credit Rules, 2004 which provides that the Deputy/Assistant Commissioner having jurisdiction over the factory of manufacturer of final product who intends to send the inputs or partially processed inputs outside his factory to the Jobworker, can permit them to clear the goods from the premises of the jobworker, subject to conditions as may be specified by him.
Procedure for remove the goods manufactured on Job basis directly from the premises of job worker
- Make an Application to the jurisdictional deputy/Assistant Commissioner
- Take an undertaking from job worker for proper stock maintenance
- Give Intermediate job workers details
- Invoice and bill will be generated by principal manufacturer bearing the remarks in block letters on the top of the invoice “Removed from the premises of the jobworker M/s. ——
——————————– as permitted byt he Deputy/Assistant Commissioner, Central Excise, Division under F. No……………………..under Rule 4(6) of the Cenvat Credit Rules, 2004″.
Who will pay the duty in case of removal of goods manufactured on Job basis directly from the premises of job worker
Duty will be paid by principal manufacturer
Can principal manufacturer take the Cenvat credit?
Yes, principal manufacturer take the Cenvat credit on input.
Removal Of Goods Sent To Job Worker From Principal Manufacturer Factory
Clearance of goods manufactured on job basis from the premises of principal manufacturer
A principal manufacturer can send the goods to Job worker and goods must be return back within 180days for claiming of Cenvat credit by the principal manufacturer. If goods not received with in 180 days principal manufacturer has to pay the amount equivalent to Cenvat credit duty to the government.
Amendment in Budget 2015 in procedure of job work –
(1) After budget 2015 input goods/raw material can be directly sent to the job worker premises and principal manufacturer can take the cenvat credit on the basis of challan issued by the job worker –
The CENVAT credit on inputs shall be allowed to the principal manufacturer if any inputs are sent to a job worker and from there subsequently sent to another job worker , for further processing and received back in manufacturer factory with in 180days.Provided that credit shall also be allowed even if any inputs sent directly to the job worker premises without procuring in the principal manufacturer premises in such a case, the period of one hundred and eighty days (180 days) shall be counted from the date of receipt of the inputs by the job worker.
(2) If goods not received with in 180 days principal manufacturer has to pay the amount equivalent to Cenvat credit duty to the government and take the CENVAT credit when goods received in the premises of principal manufacturer.
(3) For capital goods time limit is 2 years instead of 180 days.
Is job worker charged excise duty on the removal of the excisable goods to principal manufacturer?
- No, it is exempted under notification 214/86. Notification 214/86 was issued to grant exemption from job work amounting to manufacture
Is job worker can take the Cenvat credit on input goods used in manufacturing of goods by availing exemption u/s 214/86?
Yes, job worker can take the input credit by availing exemption under 214/86 if the final goods are taxable in the hands of principal manufacturer.
If goods transfer by job worker to principal manufacturer is an intermediate goods and intermediate goods is exempt in the excise duty but final goods is taxable than also job worker can take the credit.