Sales tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2012 when jobworker sends goods to his clent after getting job done on client`s goods...this doesn`t result to sale .hence no vat attracted...!!!! but my client have done one mistake he forget to give job work receipt at time of transportation...and sale tax officer stops the vehicle and seized good.....!!! & charging sales tax on goods....
is there any remedy avialable for jobworker....!!! can he claim client goods back without paying any sales tax...!!!
pls help senior ...ur support needed...!!

Rajnikant Vadigoppula

Rajnikant Vadigoppula (Expert)
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27 March 2012 your client will definitely have other proofs to claim that the goods are meant for JOB Work e.g., title of raw material, consignment detail/delivery challan of raw material to job worker, the receipient of finished goods will have these proofs and there are many other option available depending upon the case.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2012 thanx sir,
but job worker is small sevice provider....he can only show 'job work receipt' which he forget to give at time of transportation...!!!!

i think delhi sale tax dept will not remove goods without payment of sale tax....!!!

sir can u give any other suggestion~

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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23 July 2025 This is a classic issue many job workers face due to missing documentation at the time of transit.

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### Key points:

* **Job work does not amount to sale**, so no VAT/sales tax is attracted on goods returned by the job worker to the client.
* However, **transporting goods without proper proof** (like job work receipt or delivery challan) can cause seizure by tax authorities.
* Sales tax authorities may insist on tax payment or security until proof is furnished.

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### Possible remedies:

1. **Produce alternative proof of job work:**

* If the job worker forgot to carry the job work receipt, check if there is any **delivery challan, dispatch memo, purchase order**, or other documents showing goods belong to the client and are under job work.
* Any correspondence or agreement with the client can also help.

2. **Get a letter or certificate from the client:**

* Client can issue a **letter certifying goods sent for job work**, mentioning that no sale took place.
* Submit this letter to authorities as proof.

3. **Appeal to tax authorities:**

* Request **release of goods on bond or undertaking** without payment of tax, pending verification.
* Many departments allow such relief if the case is genuine.

4. **File a complaint or representation:**

* If goods are seized unfairly, file a **written representation or complaint** citing the job work provisions.
* Refer to relevant sections/rules exempting job work from VAT/sales tax.

5. **Legal options:**

* If departmental action is unjust, job worker/client can approach **Appellate Tribunal or Court** for relief.

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### Practical advice for the job worker:

* Always carry **job work receipt/delivery challan** during transportation to avoid such issues.
* In this case, approach the tax officer with all available documents and request release of goods without tax payment.
* Have client coordinate with tax officials to provide proof and assist.

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If you want, I can help draft a **letter/request to tax authorities** or explain relevant rules on job work exemption for your state. Would that be useful?

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