Notification 83/94 and 84/94 of central excise- for job work

Hello

Facts

X ltd is a manufacturing unit converting marble blocks to slabs.

Y ltd is also a manufacturing unit converting those slabs into tiles after calibration, edge cutting and polishing and finally export the finished product.

Both X and Y are availing the benefit of SSI exemption.

Both X and Y are NOT registered under excise.

Now if Y clears inputs to X and X after processing returns the semi finished goods back to Y and then after further processing Y finally export such goods i.e X is the job worker and Y is the principal manufacturer.

Then if Y files a declaration under notification 83/94 and 84/94 CE then please advise whether

1) X the job worker will not be liable to pay excise duty and Y the principal manufacturer will be liable to pay excise duty on finished product as per the declaration under notification 83/94 and 84/94 but since Y is exporting the final goods then excise duty will not be levied on Y also. Is it true?

2) the value of such clearances will not be included in the limit of 1.5 crores SSI exemption limit for both X and Y. Is it true?

Regards

CA sheetal surana

Originally posted by : CA Sheetal Surana
	Hello Facts X ltd is a manufacturing unit converting marble blocks to slabs. Y ltd is also a manufacturing unit converting those slabs into tiles after calibration, edge cutting and polishing and finally export the finished product. Both X and Y are availing the benefit of SSI exemption. Both X and Y are NOT registered under excise. Now if Y clears inputs to X and X after processing returns the semi finished goods back to Y and then after further processing Y finally export such goods i.e X is the job worker and Y is the principal manufacturer. Then if Y files a declaration under notification 83/94 and 84/94 CE then please advise whether 1) X the job worker will not be liable to pay excise duty and Y the principal manufacturer will be liable to pay excise duty on finished product as per the declaration under notification 83/94 and 84/94 but since Y is exporting the final goods then excise duty will not be levied on Y also. Is it true? 2) the value of such clearances will not be included in the limit of 1.5 crores SSI exemption limit for both X and Y. Is it true? Regards CA sheetal surana