Trader or Job Worker Under Excise

Originally posted by : Amit Modi
	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

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.

if the liability goes on job worker, he will add the same in his bills from principal !!

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

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.