Clearance from job worker place

[RAMESH ANANTHAKRISHNAN]

Dear Sir,

We are engaged in the manufacture of synthetic filament. Our unit is situated at various places. During the process, there is generation of yarn waste. So for we cleared the yarn waste from the respective unit by paying the appropriate duty. Now we would like to convert the yarn waste into granules. The job worker situated at Chennai. Shall we clear the yarn waste from the respective unit without payment of duty to the job worker under job work procedure. After completion of job work instead of getting back the converted material from the job worker to the respective unit, shall we raise invoice with appropriate duty from the respective unit to the customers?

Kindly advise.

[Mahir S]

Yes Sir, you can carry out both the procedure mentioned in your query.

Such procedure is allowable and within excise rules and regulations.

AI Summary

Job work transfer permits duty-free clearance of manufacturing waste to job workers, with duty payable on subsequent sale. Yarn waste may be cleared to a job worker without payment of duty under the job work procedure for conversion into granules, and after job work the principal may raise an invoice from its unit to customers with appropriate duty, subject to compliance with excise rules and required documentation.