TaxTMI 
TaxTMI 
My client holds a "Manufacturer" registration under Central Excise for Adhesives and Sealants. They want to buy/ import steel coils and get them converted into steel tubes on job work basis. Can they avail the benefit of Notification 214/86 , even though they do not have the "manufacturer" registration for "steel tubes", since the Notification uses only the word "manufacturer"
JOB WORK under Notification 214/86
10 May 2011 
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Notification exemption: converting purchased steel coils into tubes may not qualify as job work; processing for another manufacturer may.
Entitlement to Notification 214/86 depends on whether the steel tubes are excisable and included in the holder's central excise registration, and on whether the conversion activity constitutes manufacture or true job work. Processing purchased inputs by the registrant itself generally risks classification as manufacture with the registrant treated as a deemed manufacturer and liability to excise; processing for another registered manufacturer may qualify for the notification if duty is payable by the final manufacturer. Consideration of valuation rules was also advised. (AI Summary)
Entitlement to Notification 214/86 depends on whether the steel tubes are excisable and included in the holder's central excise registration, and on whether the conversion activity constitutes manufacture or true job work. Processing purchased inputs by the registrant itself generally risks classification as manufacture with the registrant treated as a deemed manufacturer and liability to excise; processing for another registered manufacturer may qualify for the notification if duty is payable by the final manufacturer. Consideration of valuation rules was also advised. (AI Summary)