57F4- excise is applied my my row material by job worker.

[Avanish Gupta]

Dear Team,

We supply some our components to our supplier on job work challan, and our supplier also add some more component to prepare one complete assembly.

Suppose the value of our components is ₹ 65.00 and the value of components added by our supplier, is ₹ 75/- including his labour. While making the Excise invoice to us, on what amount he will charge the excise duty ,on 75/- or including our cost also i.e. 135/-. and our cost will be deducted from the gross Invoice Amount.

please explain the process as per Excise guidelines.

My qus. is that why they are charging the excise on my my material, however we already have paid the Excise and if again the job worker would apply the excise again on my material, it will be duplication of tax.

And as far as i know 57F4 challan means my material is going out only for further process.

Please suggest me and provide the act or sec. so that i can improve my self.

Regards,

Avanish

AI Summary

Clarification on Excise Duty: No Duty on Job Work if No Manufacturing; Duty on Total Value if Manufacturing Occurs. A query was raised about the application of excise duty on materials sent to a supplier for job work, questioning whether excise should be charged on the total value of components or only the added components. The concern was about potential double taxation since excise was already paid on the original materials. Responses clarified that if the job work does not constitute manufacturing, no additional duty is required. However, if it does, excise duty should be calculated on the total transaction value, including raw materials and added components, as per Central Excise Valuation Rules. Additionally, a case law was referenced to support the explanation.