Applicability of Excise Duty on Job Work

[Monika Mittal]

Ours is an excisbale unit, if we want to do the job work of a unit which not an excisable unit. What are the rules of excise regarding that.

well the liability of excise arise when a excisible goods are manufactured or produce by the organisation.

here u are the manufacturer of the good which are to be done the job work for other party which is not a excisible unit.

 

event though u have to pay the excise duty

 

 

[CASeetharaman KC]

The regulations relating to job work are covered by the often referred notification no 214/86 dated 25.03.1986 as amended from time to time. The provisions relating to the movement of goods and the permissions required etc are covered here. The question of excisability comes in when the event of manufacture happens while doing the job work. If in the process of doing job work an excisable good comes into existence then relevant duty would be payable at appropriate rates even though the final product shipped out by the ultimate manufacturer is not subject to excise duty. For answering your question in the right perspective lot of issues would have to be looked at, like the operation you are carrying out as a job worker ( as there are certain operation which are classified as deemed manufacture) and many more issues. The question is also not clear whether the goods are not excisable or the unit has not exceeded the excisable limit

[Ramaiah Swamy]

good evening mam,

 

I agree with the views expressed by mr. seetharaman

Notification No. 214/86 - CE takes care of the situation

 

Before taking a final call, it is necessary to look at the operations carried out by you and suc other factors

Hope, this would suffiice

 

With best wishes

 

Rangaswamy

AI Summary

Excisability of goods determines excise duty liability when job work operations produce excisable goods.
Liability for excise duty in job work arises when the job work process results in the creation of excisable goods. An excisable unit performing job work for a non-excisable party may incur duty if the operations amount to manufacture or are treated as deemed manufacture, and the job work notification governing movement and permissions must be examined for procedural compliance.