Job worker - registration with central excise

[chaganti srinivas]

Is it necessary for a job worker to Register with Central Excise, where material despatching directly from Job worker premises to customer.

[Dinesh Gupta]

Are you concerned with the situation in which manufacturer sends material to the job worker under cenvat credit scheme and wish to sale the material directly from the premises of the job worker. In such a situation, principal has to take permission from the commissioner. In this situation, job worker may not be required to get registration from the central excise department. But, this situation may differ, if commissioner imposes certian condition before allowing such removal.

[RadheyShyam Mangal]

The permission now is required to be obtained from the jurisdictional AC/DC of Central Excise of the Principal Manufacturer for direct dispatch of goods from the job workers premises.Earlier, it was required from the Commissioner.The jobworker need not be registered with CE except where it is insisted by the AC/DC granting permission for direct dispatch. Rule 4(6) of CCR, 2004" The Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of the manufacturer of the final products who has sent the input or partially processed inputs outside his factory to a job-worker may, by an order, which shall be valid for a financial year, in respect of removal of such input or partially processed input, and subject to such conditions as he may impose in the interest of revenue including the manner in which duty, if leviable, is to be paid, allow final products to be cleared from the premises of the job-worker."

AI Summary

Job worker registration: permission for direct dispatch governs whether separate excise registration is required. Direct dispatch of goods from a job-worker under the cenvat credit scheme requires permission from the jurisdictional Assistant/Deputy Commissioner for the principal manufacturer; the job worker generally need not register with central excise but registration or other conditions may be imposed by the AC/DC in the interest of revenue, including duty payment arrangements.