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Removal of raw material with payment of duty

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Amit Kothekar

SAP MM Consultant

21 Points Posted on 25 February 2014

Hi Experts,

Here is a scenario for whih I need some expert advice.

My Client is a Footware manufacturer and wants to Subcontract its process. He has a Manufacturing plant (Excisable) and Warehouse (Duty Paid). Now he wants to move Raw material and Semi Finished Goods from Manufacturing Plant to Vendor, with payment of duty, and further wants to take the Finished Product directly to Duty Paid Warehouse.

I want to know what will be the Excise implecation in this process and at what stage? Client says he will only pay duty on removal of material and thereafter no excise duty he wants to pay. Is it possible under the law? Please advise.

Replies (1)

Arun Kumar Singh

GST Advocate

13166 Points Posted on 01 March 2014

Your client is a principal manufacturer he need to pay excise duty on final products. He will removed the raw material and semifinished goods from our premises to jobworker premises on job work challan. After the jobwork, goods can be cleared directly from the place of job worker with permission of AC/DC.