Amit Modi (CA) (64 Points)
28 February 2011I have Confusion who is liable to excise trader or Job worker !
The Trader has purchesed goods from Xyz Company .Than Trader send goods to Job Worker. Job Worker Process On Goods.Than Goods become Excisable .After that Trader Sells Goods to Other Party. Whether Trader is liable to excise or not. Whether job worker is liable to excise or not
Please give answer
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 28 February 2011
| Originally posted by : Amit Modi | ||
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I have Confusion who is liable to excise trader or Job worker ! The Trader has purchesed goods from Xyz Company .Than Trader send goods to Job Worker. Job Worker Process On Goods.Than Goods become Excisable .After that Trader Sells Goods to Other Party. Whether Trader is liable to excise or not. Whether job worker is liable to excise or not Please give answer |
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Trader is the one dealer who "trades goods as he receives" he can not get it manufactured on his behalf by other manufacturer.
such Merchant manufacturers have to decide whether job worker would pay the excise duty or the "merchant manufactuer" as excise liability arises when the goods are manufactured, the party who intends to pay the duty can avail benefit of threshold limit of 150 lacs.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 28 February 2011
if the liability goes on job worker, he will add the same in his bills from principal !!
Amit Modi
(CA)
(64 Points)
Replied 01 March 2011
It Means that
The Supplier,Who receives goods from Xyz Company & Send to Job worker, After Processing goods Received from Job Worker & sales goods to others. Then Supplier is not liable to excise
If the Suppiler has no control & supervision over job worker than Job worker is liable to excise
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 01 March 2011
| Originally posted by : Amit Modi | ||
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- excise is chargable when manufacturing takes place, if it happens at job workers place then its not work but manufacture. - question is not control or supervision, but discharge of central revenue, if job worker is imposed to pay duty then surely he will take from supplier, coz the duty amount would be higher than his job work bill in most cases.
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Ashish Barthwal
(Article)
(137 Points)
Replied 08 April 2012
What if, inputs are purchased by Mr A and after processing it removed to the premises of job worker for further manufactring.
The % of process of manufactring at factory of assese is 20% and balance of manufacturing required to make product in saleable condition is made by job worker.
Tell me please what will be the treatment of such removal::
1)--If goods are sold to customer from the premises of job worker.
2)--If goods are returned to factory of within 180 days and sod to custormer.
Who will be liable to pay exicse duty and take cenvat credit on input/input sevices?
When can job worker will be liable to pay exise duty.
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