Excise Invoice

[Pradeep Kaushik]

Respected All,

We supply some our components to our supplier on job work challan, and our supplier also add some more component to prepare one complete assembly.

Suppose the value of our components is Rs. 65.00 and the value of components added by our supplier, is Rs. 75/- including his labour. While making the Excise invoice to us, on what amount he will charge the excise duty ,on 75/- or including our cost also i.e. 135/-. and our cost will be deducted from the gross Invoice Amount.

please explain the process as per Excise guidelines.

Pradeep kaushik

 

AI Summary

Valuation of job-work goods: include principal's material cost with job charges unless transaction value rules apply.
Excise duty on goods manufactured by a job-worker is computed by including the cost of materials supplied by the principal along with job-worker charges, but Rule 10A directs valuation primarily by the principal manufacturer's transaction value or the normal transaction value where the principal sells or transfers the goods; absent those scenarios, other valuation provisions apply. The job-worker is treated as manufacturer for duty liability unless exemptions apply, and procedural choices (payment at removal, use of job-work challans, timely returns) affect duty incidence and CENVAT credit availability.