Excise Duty Liability on Scrap generated at Job Worker Premises

[Rakesh K Paliwal]

Dear All,

Pl let me know the judgments on above subject, when Principle Manufacture sent goods[ under rule 4(5)a] for fuhrer processing to job worker /processor , and get back after processing , which is add in final product on which duty paid by principle manufacturer, what is the treatment of scrap generated at job worker premises regarding duty liabilty ????

Regards

Rakesh Paliwal

AI Summary

Excise Duty on Scrap: Options for Handling Scrap from Job Work and Legal Precedents on Direct Sale Without Penalty. A discussion on excise duty liability for scrap generated at a job worker's premises involves a query about the treatment of such scrap when goods are sent for processing and returned to the principal manufacturer. One response suggests that excise duty should be paid on the scrap, which should be returned with the processed goods. Another response offers two options: either clear the scrap by paying excise duty on its value or return it with the processed goods. A third response cites legal precedents indicating that scrap need not be returned to the manufacturer and can be sold directly, with excise duty paid, without penalty.