Job work under 7114

[Arun Aggarwal]

Sir,

I have a factory in Delhi and its branch in Chandigarh both are registered with central excise as manufacturer.

If I purchase cenvatable gold in Delhi and transfer the same to Chandigarh, and Chandigarh makes coins out of it under 7114 and the transfer it back to Delhi office which after further processing exports it under rule 18 Rebate.

My question is that whether Chandigarh factory can take the cenvat and charge excise duty and return to Delhi factory or it will be called Job work in the hands of Chandigarh Factory?

My interest is to pay excise in Chandigarh and Delhi factory takes the cenvat and export it under rebate

Arun

AI Summary

Business Owner Seeks Clarification on Excise Duty for Transferring Gold Between Factories Under Central Excise Act A business owner with factories in Delhi and Chandigarh inquires about the excise duty implications of transferring cenvatable gold between the two locations for manufacturing coins. The concern is whether the process in Chandigarh is considered manufacturing or job work. An expert clarifies that the coin production in Chandigarh is manufacturing under the Central Excise Act, requiring duty payment when transferring to Delhi. The owner can choose to treat it as job work under specific notifications to avoid duty, or pay duty in Chandigarh and claim credit in Delhi. Another suggestion includes exporting directly from Chandigarh to reduce costs.