Job-Work for Unit situated in Excise exempted Zone

This query is : Resolved

Parivesh Goel (Querist)
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12 May 2011 We are manufacturing Brass sheets & strips (Excisable Item). We wish to know if Job-work of brass scrap, generated from excise paid finished Brass strips, can be converted to finished form without paying of excise duty if the buying unit is situated in excise exempted state such as Uttaranchal etc.

U S Sharma

U S Sharma (Expert)
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14 May 2011 in such case u have two choice, 1) pay excise duty on manufactured brass on total clearence value or 2) charge service tax on your job charge bill.

in absence of 2) ...1) would be applicable