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

Excise duty on scrap: principal manufacturer liable; invoice and job work challan enable cenvat credit for job worker.
Scrap generated out of inputs sent to a job worker remains the principal manufacturer's property and the principal is statutorily liable to pay central excise on such waste/scrap. Removal or sale of excisable scrap requires issuance of an invoice under the Central Excise Rules with reference to the job work challan so that the job worker can take Cenvat credit; procedural compliance is essential to govern credit entitlement and lawful disposal or reuse of scrap.