Seizure of Principal Manufacturer's Stock Lying at Job Worker's Premises

[Vivek Gupta]

The Principal Manufacturer (PM) is not registered under the excise laws and its Job Worker agrees to discharge all the related excise liabilities under Notification No 36/2001.

The PM retains the right and title of the stocks both raw materials and finished goods lying at the Job Worker's premises.

However the excise liability on the stock is being discharged by the Job Worker.

If the job worker fails to discharge the excise liability due against the stocks of the PM, then can the Excise Dept seize the stock of the PM lying at the job worker's premises.

AI Summary

Seizure of principal manufacturer's stock: goods removed in contravention of excise law may be seized if duty is unpaid.
Dutiability arises at the time of removal of excisable goods; removals in contravention of excise law can be seized from a job worker's premises. Proper invoices are required for movements and the job worker who issues invoices must state and calculate "duty payable" and ensure duty is paid by the due date. Principal manufacturers generally must register and prescribed job-work procedures govern movement and accountability, making seizure possible where the job worker fails to discharge duty on stocks held on behalf of the principal.