Job work reg.

[vinay wakde]

We are manufacturer of Liquid Carbon Dioxide & Dry Ice which is by products of our main plant i.e. Sponge Iron. Our production of Sponge Iron is presently stopped.  To meet the requirement of our customers for Dry Ice, we intend to receive Liquid Carbon Dioxide (Free issue for job work) under cover of Excise Invoice with charging 12.36% Excise duty & VAT @ 5%. On receipt of material we shall be taking benefit of CENVAT of Excise duty & VAT. The receipted liquid Carbon Dioxide is used for processing / job work of Dry Ice.

The finished goods i.e. Dry Ice is sent back to the same supplier by raising our Excise Invoice with charging Excise duty 12.36% on value of material (i.e. cost +VAT+ Tpt. charges + our value addition) and also charging the VAT.

Kindly let us know whether we are following the correct procedure for job work? or any other procedure to be followed to meet the requirement of our customer during stoppage of our production. Kindly also guide us whether the Department take objection for above transaction.

Regards,

VINAY

 

AI Summary

Manufacturer Seeks Clarification on Excise Duty Procedures for Job Work During Production Halt Under Excise Invoice A manufacturer of Liquid Carbon Dioxide and Dry Ice, which are by-products of a Sponge Iron plant, inquired about the correct procedure for job work during a production halt. They plan to receive Liquid Carbon Dioxide under an Excise Invoice, process it into Dry Ice, and return it to the supplier with applicable excise duty and VAT. They seek confirmation on whether their approach is correct and if the Department might object. A response suggested that paying the applicable excise duty should suffice, but advised disclosing all facts to the Central Excise commissioner or seeking an Advance Ruling for clarity.