Own unit as job work

Dear All,

We have two units both are central excise registered. Threre is no purchase and sale in the second unit.

The second unit is just doing a intermediate part of the manufacturing process, entire raw material is sent from our main factory following jobwork annexure system. Semi-finished goods are then returned from the unit to our main unit for further processing and sale.

All the expenses of the second unit are re-imbursed from our main factory. So there is technically no value addition.

Now my question is can we use our excise registered unit as per jobwork system or we should follow the CAS-4 system.

BR. Priyanka

 

Replies (2)

When clearances of materilas to another unit are under CENVAT challan, there is no need of CAS-4, this is in confirmity with Cenvat rule 4(5)a

Raksh*t

9810525780

No need to continue excise registration for second unit if only job work activity. The second unit can do the job work without excise registration. 

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