Job Work under Notification 214/83-CE dated 25.03.1986 - Commissioner approval

[Narendra Soni]

Dear Expert,

Whether commissioner approval is required for job work done under Notification 214/86-CE dated 25.03.1986 as ammended.as per Notification Under taking to AC/DC is required but our central excise authority is asking for prior approval from commissioner, Please suggest.

[Rajagopalan Ranganathan]

Sir,

Para 2 of Notification 214/86-CE dated 25.3.86 states that_

"The exemption contained in this notification shall be applicable only to the said goods in respect of which, -

(i) the supplier of the raw materials or semi-finished goods gives an undertaking to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise having jurisdiction over the factory of the job worker that the said goods shall be-

(a) used in or in relation to the manufacture of the final products in his factory; or

(b) removed from his factory without payment of duty -

(i) under bond for export; or

(ii) to a unit in a free trade zone or to a hundred per cent. export-oriented undertaking or to a unit in an Electronic Hardware Technology Park or Software Technology Parks or supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-C.E.,dated the 28th August, 1995; or

⁵[(iii) by a manufacturer of dutiable and exempted final products, after discharging his obligation in respect of said goods under rule 6 of the CENVAT Credit Rules, 2002; or]

(c) removed on payment of duty for home consumption from his factory; or

(d) used in the manufacture of goods of the description specified in ⁴[column (1)] of the Table hereto annexed by another job worker for further use in any of the manner provided in clause (a), (b) and (c) as above.

(ii) the said supplier produces evidence that the said goods have been used or removed in the manner prescribed above; and

(iii) the said supplier undertakes the responsibilities of discharging the liabilities in respect of Central Excise duty leviable on the final products.

It is nowhere stated in the Notification permission from Commissioner is required for availing the said Notification. Hence prior approval from commissioner is not necessary.

[Narendra Soni]

Thanks Mr.Rajagopalan Ranganathan.

The department is asking to refer Rule 16 (A) of CER 2002, " Any input..........subject to conditions....by Commissioner.....Juridiction. Please suggest.

[SURESH ASTEKAR]

Rule 16A also does not require permission to be obtained from the Commissioner or Principal Commissioner. If in case the Commissioner / Principal Commissioner having jurisdiction has prescribed any conditions for removal of inputs to a job worker, in that case those conditions need to be fulfilled. Rule 16A is reproduced below:

16A Removal of goods for job work, etc.-

Any inputs received in a factory may be removed as such or after being partially processed to a job worker for further processing, testing, repair, re-conditioning or any other purpose subject to the fulfillment of conditions specified in this behalf by the ¹[Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] having jurisdiction.

SURESH ASTEKAR

[Mahir S]

Sir,

pls check the activities required to be carried out under job work, as there must be something missing in your query.

AI Summary

Commissioner approval for job work not mandated by Notification; compliance with conditions specified under Rule 16A is required. Notification 214/86 exempts specified goods when the supplier gives an undertaking to the Assistant or Deputy Commissioner that goods will be used in manufacture, removed under permitted modes, or used by another job worker; evidence of use or removal and supplier responsibility for duty on final products are required. The Notification does not require prior Commissioner permission. Rule 16A allows removal of inputs to job workers subject to conditions specified by the Principal Commissioner/Commissioner, and while it does not itself require prior permission, any prescribed conditions must be fulfilled.