Excise on job work

First of all please note that you are not a trader, you are manufacturer of goods and getting it manufactured on job work basis. Yes you are not covered under excise as your value of clearance is less than Rs.1.5 cr. In your case both option is availabile for you either you can clear the all goods upto 1.5 cr under notification No.08/2003-CE or you can pay duty of excise from the 0 value of clearance. 

In this case you are a manufacturer. since your sale turnover ( exluding VAT ) is below rs.150 Lakhs you need not to registered under Excise. if you want to  claim cenvat credit you have to be registered under excise and pay duty from 0.00 turnver. your supplier ( not job worker, the material suppler) should also have Excise registration and then he can transfer the cenvat through gate pass.

But your job worker is  not dealing with any goods and just he process the goods on your behalf. in this case he has  to charge you service tax under " Business Axilary services". if you get registered under Exciase and if you are paying duty on that goods than he can claim exemption from payment of service tax.

The job-worker, in your case, is the manufacturer.  The total value of excisable goods(including the cost of material supplied by you) cleared at the factory gate of the jobworker is to be counted towards exemption of Rs.1.5 crores. However, the jobworker is required to file a declaration, under rule 9 of the central Excise Rules,2002, after reaching the value of clearance of Rs. 90/- from his factory.

Advocate Raksh*t Verma

1. Someone told me that you cannot be a manufacturer without having a factory and production unit.. is that true? AS we dot have any factory of machines , we are just getting job work done, is it ok to do so?

2.  If we provide one Input (worth Rs.50 ) the job worker adds and input of Rs.20 and provess the two. Will it still remain job work?
3. Can the job worker process 1.5 Crores worht of goods for 5 Clients and still not register under excise?

if you does not have any factory or production, central excise registration will not be granted to you as a manufacturer. if do'nt have ECC, you can not gets the goods manufactured as per Central Excise Rules & regulation.

Originally posted by : Rajat
	1. Someone told me that you cannot be a manufacturer without having a factory and production unit.. is that true? AS we dot have any factory of machines , we are just getting job work done, is it ok to do so? 2.  If we provide one Input (worth Rs.50 ) the job worker adds and input of Rs.20 and provess the two. Will it still remain job work? 3. Can the job worker process 1.5 Crores worht of goods for 5 Clients and still not register under excise?

job worker would be deemed manufacturer in this case, and his turnover would be calculated with gross value clearances, including the raw materials supplied, he is entitled to SSI exemption of 150 lacs on total clearances from his factory. 

@ jogendra
"1. Someone told me that you cannot be a manufacturer without having a factory and production unit.. is that true? AS we dot have any factory of machines , we are just getting job work done, is it ok to do so?"

//"if you does not have any factory or production, central excise registration will not be granted to you as a manufacturer. if do'nt have ECC, you can not gets the goods manufactured as per Central Excise Rules & regulation.""/

Please clearify weather we can get the job work done upto amount of Rs.1.5 Cr or not without Excise Registration?

Dear sir,

please mail. 4(5)( a) challan format