Excise Duty Payment on Job Work done for Solar Project

[Guest]

Dear Sir,

We at Emco Ltd has done job work (Galvanising) for steel column supplied by XYZ Ltd.

For the above job work done material, XYZ Ltd has obtained certificate from Ministery of New and Renewable energy and from Excise department under notification no. 15/2010 & 26/2012 for clearing goods with NIL rate of excise duty.

Emco has done galvanising job work for XYZ Ltd and XYZ Ltd is clearing this good without payment of Excise duty to Moris Energy Ltd for initial set up of Solar Project.

Now, my question is that, whether Job Worker (EMCO Ltd) is liable to pay Excise duty as XYZ Ltd has cleared good without payment of duty.

All, are requested to guide me on this issue as it is very urgent.

[Rajagopalan Ranganathan]

Sir,

As a job worker there is no liability on you for payment of duty. Only XYZ has to determine whether they have to pay any duty.

[Ganeshan Kalyani]

Either of the party should pay excise duty.

AI Summary

Excise duty liability may rest with the principal, though an alternative view suggests either party could be liable. The issue concerns whether a job worker is liable for excise duty when the principal cleared galvanized goods under an Exemption Certificate for solar project supplies. One advisory response states the job worker is not liable and liability rests with the principal who cleared the goods; an alternative response records that either party could be required to pay excise duty.