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.
MOVEMENT ON JOB WORK CHALLAN
SANJEEV JADHAV
Company Seeks Guidance on Using Job Work Challans for Moving Patterns and Dies in Manufacturing Castings A company operating two foundries is seeking advice on the use of job work challans for moving customer-supplied patterns and dies used in manufacturing castings. Some patterns are received with duty paid, while others are on challans without duty. The company does not claim CENVAT credit on these patterns and occasionally shifts them between foundries. Responses indicate that if goods are manufactured during job work, the job worker must pay excise duty unless exempted under specific conditions. Additionally, patterns received without duty should continue to move on challans, with the sender responsible for compliance. (AI Summary)