Capital Goods sent for job work purposes.

[vinay wakde]

We shal be importing Capital Goods namely Briquetting Segments under zero duty EPCG scheme. After receipt of the segments, we have to sent the Capital Goods  for job work at Culcutta. In the matter kindly calrify the following points:-

(1) Whether the Imported Briquetting Segments shall sent directly to the job worker at Culcutta ?

(2) Since the material received under Zero duty EPCG scheme, how much  Excise duty /  Sales Tax shall be charged by the job worker in their Invoice ?

Regards,

VINAY

[YAGAY andSUN]

What is the purpose of getting jobwork done on newly imported Capital Goods whether it will amount to Technological upgradation if so then you would have to file Application in ANF 5A for sourcing the upgradation indigenous sourcing of Capital goods.

You would have to seek prior permission from DGFT/Customs/Central Excise Department.

[vinay wakde]

The Segments imported by us shall be sent for job work i.e. for Pocketing purposes before put into the use. This is required for Briquetting machine of our Sponge Iron plant.  We are receiving imported Segments without pocketing.   Instead of bringing imported segements without packeting in the plant, we would like to sent the said  segments directly to the job worker at Culcutta & after packeting i.e. Job Work, these segments shall be returned back to us. This will avoid our cost of transportation from our factory at Salav, Raigad to Culcutta. In the matter, kindly advice us about the provisions in the law.

Regards,

VINAY

 

AI Summary

EPCG imports: prior permission required for direct job work dispatch and possible ANF 5A filing, check duty implications. Whether imported capital goods under the EPCG zero duty scheme may be sent directly to a job worker for preparatory job work and what excise or sales tax the job worker must charge are the issues. If the job work involves technological upgradation, an application in ANF 5A for sourcing/upgradation may be required and prior permission from DGFT, Customs and Central Excise should be obtained; duty or tax liability will depend on compliance with EPCG conditions and permissions.