Can one job worker can send the inputs and tools to another job worker for further process.

[Asked by Guest]

Dear Sir,

We are a manufacturer and we send our Inputs , tools and dies to our job worker for manufacture of product as per our specification. This job worker not registered under Central Excise.

My query is if this job worker wants to send our inputs, Tools and dies to some other job worker for doing the same job. Is it permissible as per Central Excise ? If yes please give me the reference any rule or notification etc.

Regards

Swapneswar Muduli

AI Summary

Job worker subcontracting permitted; inputs must be returned within prescribed statutory timeframes and principal remains liable.
The Cenvat Credit Rules permit inputs sent to a job worker to be further sent to another job worker for further processing provided the inputs or resulting products are accounted for and received back by the principal manufacturer within the statutory return period; tools and dies, as capital goods, are subject to a longer capital-asset return period. The principal manufacturer must give the prescribed undertaking, intimate the department with the second job worker's details where required by the governing notification, and retain records and challans to evidence movements and returns.