Issuance of Cas 4 certificate necessary

[Asked by Guest]

Dear Sir, We are a mfg co we are having a processor I.e job worker . Our raw material is directly sent to our job worker he process the goods and sent to us on payment of duty that material is use further by us in manufacture of our finished goods so is it necessary for us to issue that job worker cas4 certificate for clearance of such product, please explain, please give us any reference regarding this, thanks and regards.

[Mahir S]

Sir,

As per my view, CAS-4 shall be required only at the time of final clearance of finished goods from your factory premises No need to provide CAS-4 to the job worker as the goods cleared by job worker as WIP/semi finished goods.

However, if department have any doubt pertaining to Valuation of goods, they may ask to provide such details.

[PAWAN KUMAR]

Dear Sir,

As per my view, No such certificate is submitted. Although the job worker is sending processed goods to you for further use in your manufacturing, valuation should be as per rule 10A of Central Excise Valuation Rules, 2000.

[Mahir S]

Yes sir no cas-4 certificate to be submitted as explained above.

However, since job worker are only doing job work and not manufacturing or producing the goods on behalf of the manufacturer and also not clearing the goods directly from their (job worker,s premises), hence rule 10A shall not be applicable in this case.

[YAGAY and SUN]

Dear Sandesh,

In this transaction,there is no requirement to issue the CAS4 or Valuation under Rule 10A of the Valuation Rules.

Regards,

Neelam Taneja,(Executive Consultant)

YAGAY and SUN (Management, Business and Indirect Tax Consultants)

AI Summary

CAS-4 certificate not required for job worker transfers; required only at manufacturer's final clearance, valuation rule not applicable.
A CAS certificate need not be issued to a job worker when processed goods are returned to the principal manufacturer; CAS is required at the manufacturer's final clearance of finished goods. Valuation should follow applicable rules for the manufacturer's clearance, and a special valuation provision relied on by some commentators may not apply where the job worker merely processes and does not clear goods. Tax authorities may request valuation details if valuation or classification doubts arise.