Effect on Excise benefit because of Outsourcing

[Guest]

Hi

We are a manufacturing company in Mysore and we are planning to outsource receiving inspection to a 3rd party. We would release a PO with Billing address as our company and shipping address as our 3rd party company handling our inspection. He will inspect the parts and dispatch the goods to our factory located in the same excise area ( 2KM from our factory) I need few clarifications

1 Can we move the parts to 3rd party address against our order with different billing and shipping addresses?

2 ON what document our 3rd party vendor should dispatch the goods to us. Can he send on simple delivery challan along with services invoice for inspection?

3 GR will be done at our factory after receipt of goods from 3rd party vendor. Under these circumstances do we still get the excise benefit or do we loose it since billing and shipping addresses are different?

Regards

CNR

AI Summary

Manufacturing Firm Explores Outsourcing; Queries on Excise Benefits and CENVAT Credit for Third-Party Shipping Address. A manufacturing company in Mysore is considering outsourcing its receiving inspection to a third party and seeks clarification on excise benefits. They plan to issue a purchase order with their company as the billing address and the third party as the shipping address. The company queries about the documentation required for dispatching goods back to their factory and whether they will retain excise benefits despite differing billing and shipping addresses. The response indicates that goods can be sold from the third-party address, and both the company and the job worker can claim CENVAT credit, but SSI exemption may not apply.