MOVEMENT ON JOB WORK CHALLAN

[SANJEEV JADHAV]

Dear Sirs, We have two foundries and manufacturing castings. We are getting patterns / dies from our customers for manufacture of  castings. After completion of order, we are returning patterns back to customer. Some customers are sending patterns on payment of duty and some customers on challan without payment of duty.  We are not taking cenvat credit on such received patterns.  Some times we are shifting patterns to our another sister concern foundry for execution of order. Please guide whether we required to use job work challan for said movement of patterns. 

Please send Jobwork Challan Format

[Krishan Gopal]

Dear Sanjeev,

Where the goods are manufactured during job work, the job worker would be liable to pay duty of excise on the goods so manufactured unless the principle manufacturer who has supplied him the goods for job work, furnish a declaration under notification 214/86 dated 25.03.1986 which exempts goods manufacture by a job worker from duty of excise provided the said goods after job work are returned to the principle or cleared for export or cleared for home consumtion on payment of duty of excise.

K.Gopal

 

[Radha Arun]

In the cases where you receive patterns on challan without payment of excise duty, the further movement must also be on challan.

But this is the responsibility of the person who sent the pattern, and liability of any breach will be on them.

AI Summary

Job work challan: movement on challan continues and duty liability rests with job worker unless principal provides exemption.
Where goods are sent for job work either on payment of duty or on challan without duty, the job worker is liable for excise on goods manufactured unless the principal furnisher gives the declaration under the relevant exemption notification exempting goods made by a job worker when returned to the principal or cleared for export or for home consumption on payment of duty. Patterns received on challan must be moved further on challan and the consignor who sent them bears responsibility for compliance and any breach.