Rule 10A - Job Work

Job-worker valuation rules: use principal manufacturer's transaction value or nearest normal transaction value for excisable goods.

Valuation of excisable goods produced by a job-worker for a principal manufacturer follows a hierarchy: (i) where the principal manufacturer sells at removal to an unrelated buyer for a sole price consideration, use the transaction value of that sale; (ii) where goods are transferred elsewhere for sale to an unrelated buyer for sole price consideration, use the normal transaction value of such sales from that place at or about the same time or nearest time to removal; (iii) otherwise apply the other valuation provisions mutatis mutandis. Transportation costs from the selling premises to delivery are excluded. Job-worker means one manufacturing with inputs supplied by the principal or an authorized person.