Small Scale Exemption denied where principal supplies inputs for job work; goods treated as manufactured by the principal affecting exemption entitlement. Where goods are manufactured on a job work basis using inputs supplied by a principal manufacturer and the supplier-job worker relationship corresponds to the relevant notification, such goods are to be treated as manufactured by the supplier of raw material; entitlement to Small Scale Industries Exemption must therefore be determined with reference to the principal manufacturer's status, and clearances of goods made on job charge basis and in the job worker's own account are to be aggregated as produced in a single factory for eligibility assessment.
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.
Small Scale Exemption denied where principal supplies inputs for job work; goods treated as manufactured by the principal affecting exemption entitlement.
Where goods are manufactured on a job work basis using inputs supplied by a principal manufacturer and the supplier-job worker relationship corresponds to the relevant notification, such goods are to be treated as manufactured by the supplier of raw material; entitlement to Small Scale Industries Exemption must therefore be determined with reference to the principal manufacturer's status, and clearances of goods made on job charge basis and in the job worker's own account are to be aggregated as produced in a single factory for eligibility assessment.
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