Job-work restriction: transferring duty-free raw materials to DTA for conversion is not permitted under subcontracting rules. The policy permits 100% EOUs to sub-contract part of their production for job work to DTA units subject to case-by-case approval and safeguards (bonding, identification on return, input/output norms, undertakings) and envisages transfer of part-finished goods after some manufacturing. Transferring duty-free raw materials to DTA units for conversion into briquettes, with subsequent further manufacture in the EOU, does not constitute job-work under the Public Notice and is outside its dispensation; such transfers raise accountability and leakage risks.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Job-work restriction: transferring duty-free raw materials to DTA for conversion is not permitted under subcontracting rules.
The policy permits 100% EOUs to sub-contract part of their production for job work to DTA units subject to case-by-case approval and safeguards (bonding, identification on return, input/output norms, undertakings) and envisages transfer of part-finished goods after some manufacturing. Transferring duty-free raw materials to DTA units for conversion into briquettes, with subsequent further manufacture in the EOU, does not constitute job-work under the Public Notice and is outside its dispensation; such transfers raise accountability and leakage risks.
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