Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Job work

Suhas Deshmukh (Manager Finance & Accounts) (132 Points)

22 October 2010

Can we send consumable tools, consumable oil to job worker for machining purpose on 57f4? If yes is their any notification to this effect?

As the tools are consumable they will not received back with material. Then how can we clear the challan?

Please reply ASAP

Reply
Follow
Share

6 Replies

C.A. LINESH PATIL (CA) (910 Points)
Replied 22 October 2010

I think you may send the consumable being Input to job worker.

According to Rule 16A of CER 2002 input may be removed from factory to a job worker for further processing,testing,repair,or for any other purpose,subject to fulfillment of condition specified by the commissioner having jurisdiction.

more you may also take of these goods.

same you may check by following this link.https://www.cbec.gov.in/excise/cx-rules-2002.htm

I am a student so if anything wrong so plz let me learn too.

Thanks

Suhas Deshmukh (Manager Finance & Accounts) (132 Points)
Replied 23 October 2010

Dear Linesh

But excise rules says that the material sent for job work should be returned back to the manufacturer within 180 days. And the consumable material will not be came back as it will be consumed during the job work process.

Then how it will be possible?

Regards

Suhas

Murthy B.C (Excise Officer) (141 Points)
Replied 23 October 2010

Hello Dear

if u r sending rawmaterial or consumables, u will received back as finished goods

ur consumables used for ur finished goods only

ur finished goods value will inclued ur finished goods

Murthy B.C (Excise Officer) (141 Points)
Replied 23 October 2010

ur consumables value will inclued ur finished goods

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 18 December 2010

while returning the challan they have to put notes for "process done" where they have to put the notes for consumables, as "contained/ consumed in materials above" if any consumable is returned then they have to certify on challan the actual consumption of consumables.
its just accounting tit bit to confirm that job worker did not hold any materials from the lot set for job work .

Vijay K. Agrawal (Service) (608 Points)
Replied 22 December 2010

Dear Suhas

Very much u can send consumables to jobworker under job work challan, there is no restrictions. the consumable as name suggested will be consumed and may or may not be discernible in final product.

for example raw rubber along with liquid consumable is sent to job work for convertinbg in to finished product. in this case consumable can not be return/even indentify in finished product.

please note that when you have file manufacturing process with department, in which all these Raw materal and major consumables are shown.

One important thing to note is job worker as well as your company have proper record for store which show that how much qty receive/ consume /good retruen etc.

hence there is no proble at all this practice is prevalent in many insustries including in exapmle whicj i have given

Regards,