Return of Watage by Job Worker to Principal Manufacturer

[RASIK THAKKAR]

ours is packaging unit and also undertakes job work-converting paper & board in to Packaging Cartons.

Facts -Proncipal Manufacturere supllies Paper Board to Be converted in Cartons -Finished Products

          In Invoice of job work charges weight of Inputs contained in finished product and Wastage of Input is reported.So total quantity control in the invoices and also in  sub Chalans and finally in Main Job Work chalan is mentioned.

Input wastage is not physically returned to principal manufacturer but we  -job worker -remove along with our wastage on payment of Duty.But the principal manufacturer has apprhension that excis authorities would raise on demand on them.

What is correct procedure?

AI Summary

Clarified: Job workers can manage input wastage with duty payment, no need to return waste to principal manufacturer. A packaging unit involved in converting paper and board into cartons raised a query about the correct procedure for handling input wastage during job work. The principal manufacturer supplies the materials, and the job worker removes the wastage with duty payment. Concerns were expressed about potential demands from excise authorities. Respondents clarified that recent judgments do not require returning waste to the principal manufacturer if removed with duty payment. It is advised to pay duty separately each month and provide documentation to the principal manufacturer. There is uncertainty whether the duty is included in job work charges or charged separately.