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

Excise valuation on job work: duty assessed on transaction value including raw materials and job worker additions.
Excise liability depends on whether the job worker's operations amount to manufacture: if not, no Cenvat is payable; if yes, duty is payable on the transaction value comprising the principal's raw material cost, materials added by the job worker, job charges and the job worker's profit under the Central Excise Valuation Rules.