JOBWORK AND DESPATCH

[SNEHAL SHAH]

SIR,

We are group of companies at gujrat and other state . Due to this our one unit is job work our surat unit product ( WIP ) after that ths material is called FG ( FINISHED GOODS ) & We are planning to so sell ( dispatch ) with excise invoice directly job work unit ( lying at rajasthan ). Due to havy transportation cost we want this type of dicition . We have some confusion , so please clear :

1) Can we directly dispatch this mateiral at job work unit ? if yes Excise duty debited by Job work unit or Surat unit  , Consigner name & consigee name etc.

2) Please brief all procedure .

SACHIN

AI Summary

Job-work clearance: permission required under Cenvat rules and Rule 10A valuation governs excise value of goods.
Finished goods from job-work can be cleared from the job-worker's premises subject to obtaining permission under Rule 4(6) of the Cenvat Credit Rules, 2004. Valuation is governed by Rule 10A: (i) transaction value on removal if sold by the principal at removal to an unrelated buyer; (ii) normal transaction value at the other place if sold after transfer; (iii) otherwise apply other valuation rules mutatis mutandis. Transportation cost from the premises of sale to delivery is excluded from value. "Job-worker" is defined as a person manufacturing on behalf of a principal using inputs supplied by the principal or an authorised person.