Can a job worker engaged in manufacturing

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hi

a company works as a job worker but was outside the purview of excise before budget, but post budget the process of conversion (coal into coke) carried out in the premises of job worker tantamounts to manufacture.

suppose the company act both as job worker for two clients as well as manufacturer and the conversion process is carried out alltogether as it is not possible to carry the conversion process separately for each of the clients. now the output is based on the quantity of input as per accepted valuations. any extra production will lead to surplus and will be sold in the open market by the job worker.

now my question is

whether it is possible to carry out the conversion process together for the job work(for both clients) & his own manufacture

applicability of central excise

admissibility of cenvat credit on inputs used my job worker for conversion

regards

nihit dalmia

Replies (8)

 

you need to maintain separate records for job worker and manufacturing … excise duty is on manufacturing not on job working …. You have to prove Ac/dc of central excise by maintaining separate records of manufacturing or job worker

Originally posted by : Pankaj Arora

 

you need to maintain separate records for job worker and manufacturing … excise duty is on manufacturing not on job working …. You have to prove Ac/dc of central excise by maintaining separate records of manufacturing or job worker

Im agree with pankaj arora,  you need to  maitain Aneexure -IV Register for job worker in this regards.  and maitain all cetral excise records applicability to  manufacturer your client as a manufacturer like ..... RG-23A Register and CENVAT  I & II Register and PLA.

availment of CENVAT credit on inputs is only for manufactur process carried by your client,

you need to maintain central excise records seperately for job work & manufacturing process is carefully.  take support with all necessary documents like security registers and stores ledger and stock records.

thanks a lot

suppose the client is pursuing only job work for his various clients say A, B  & C  then whether its necessary to maintain register for each of his clients separately.

i mean to say that conversion process is carried out for all the clients together and it is not possible to carry the conversion process separately for them. Now i want to know that whether the AC/DC can object the same and the documents to be maintained in this regard.

regards 

nihit dalmia

 

you need to maintain job work records like What quantity customer A sent  to you for job work and what you have return against quantity for that particular job work… you need to maintain separate records for each customer…

you can maintain challan book for it….

Dear nihit 

Please find the below attachements , it may be use full to u,  regarding job  work procedures

 

thanks & regards

 

Durga prasad Ambati

attched more files

JOB WORK CHALLAN MODEL  ATTACHED HERE

Dear all


please advice for the following Job Activity ?

We are manufacturer of LAM Coke, & Major input are different types of coal.

now we supply 7 types of coal to our job worker, & all input are consume in different ratio, now i have confusion that how i can book the produciton in Challan & how to clear the goods which produce by the job woker,

I explain with the following example.

Coal Supply :-  A  10 M.T,   B -10 M.T., C 10 m.t. & .......     wide separe challan for jow work

Job Worker Produce the LAM Coke  15 M.T.  & Coal Consume  A -10 m.t., B -8 M.T. & C -2 m.t.


so please advice how can i book produciton & what records i have to keep.

 


CCI Pro

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