RM send to Job worker for Manufacturing of Finished goods - JOB WORK - Central Excise

[SNEHAL SHAH]

Dear sir,

We are manufacturing of Chemical product and we want to send RM to Job worker and get finished goods from Job worker . After that we will sale this finished product to other customers with payment of Central Excise duty .

But we do not want to receive back scrap material from job worker and this scrap material sale to Job worker ( Job worker wants to purchase this for further utilise for manufacturing of FG ) .

Please suggest , what documents require for sale to this scrap to job worker . Job worker also registered with Central Excise , so he also wants to get Cenvat credit on this Scrap materials purchase from principal manufacturer .

Regards,

SNEHAL SHAH

AI Summary

Manufacturer Must Pay Excise Duty on Scrap; Follow Procedures for Job Worker to Claim Cenvat Credit Under Central Excise Law. A manufacturer of chemical products seeks guidance on sending raw materials to a job worker to produce finished goods while selling the scrap to the job worker, who is registered for Central Excise and wants to claim Cenvat credit. Experts discuss that the principal manufacturer must pay excise duty on the scrap, issue an invoice referencing the job-work challan, and follow procedures under Central Excise law to allow the job worker to take Cenvat credit. The process is considered revenue neutral, as the job worker can offset the duty paid against the finished goods' excise duty.