Effect on Excise benefit because of Outsourcing

[Asked by 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

Excise benefit eligibility tied to outsourcing inspection at third-party premises depends on billing, shipping and invoicing arrangements.
Effect on excise benefit arises when a manufacturer outsources receiving inspection to a third party, routes parts to the third party's premises with differing billing and shipping addresses, effects removals on challan for inspection, and receives goods back; removals are to be on challan, the third party may invoice for inspection services, goods treated as sold from the third party address can affect SSI exemption, duty may be payable on sale invoice, and both manufacturer and job worker can take cenvat credit.