Job work – Removal of final product from premises of job- worker – procedure - Central Excise - Trade Notice No. 36/2003

Trade Notice No. 36/2003 dated 13-3-2003 Job work - Removal of final product from premises of job- worker - procedure Attention of the trade is invited to the provisions of sub- rule (6) of Rule 4 of the Cenvat Credit Rules, 2002. The assesses who send the inputs or partially processed inputs outside his factory to a job worker should apply to the Commissioner for permission, which shall be valid for a financial year to allow final products to be cleared from the premises of the job worker. 2. The following conditions are hereby specified under sub- rule (6) of Rule 4 of the Cenvat Credit Rules, 2002 subject to which an assessee may removal final products directly from the premises of the job worker. 3. General 1. The manufacturer of final product hereinafter referred to as the applicant who intent to avail the above facility in a financial year should file an application to the Commissioner through the Jurisdictional Divisional Officer who will submit the same to the HQ Office with his specific recommendations. 2. The applicant should clearly mention in his application (i) The details of inputs or partially processed inputs intended to be sent to the job worker (ii) Name complete address of the job worker to whom inputs or partially processed inputs are sent for job work (iii) Registration No. and details of Range/ Division of the said job worker (iv) Input Output ratio (v) Nature of manufacture / process/ operation to be done at job worker s premises (vi) Description of final products (Tariff and commercial description) intended to be cleared from the job worker s premises (vii) Rate of duty with relevant Manner of the disposal of the wastage, whether the same would also be cleared from the job workers premises or particulars called for by the Commissioner as considered necessary. 3. Permission granted by the Commissioner to such applicant will be valid only for the period of the financial year in which such permission is granted and details of such permission would also be communicated to the concerned job workers and also to the Divisional Officer and Range officer having jurisdiction over the applicant. In case the factory of the job worker falls outside the Commissionerate, the permission letter will also be endorsed to such other jurisdictional Commissioner. 4. The Divisional Officer having jurisdiction over the applicant, should periodically review the functioning of the facility granted to the principal manufacturer, who should take immediate action and report the same to the Commissioner in case of any irregularity. 5. Permission granted to the applicant is liable for cancellation by the Commissioner at any time, in case of any serious irregularity. 6. The applicant is required to indicate whether the inputs or partially processed inputs sent outside would be processed by more than one job workers. In case a job worker send the goods to another job worker on the advice of the applicant under subsidiary challan, then the name and address of the job worker from those premises the processed goods are intended to be cleared ultimately should also be given. 4. Procedure for removal of inputs or partially processed inputs from the principal manufacturer to the job worker: 1. The applicant should maintain books of challan in triplicate serially machine numbered and self authenticated as per proforma enclosed to this Trade Notice (Annexure - I). 2. All the three copies should be legibly marked with the reference number and date of permission letter of the Commissioner. 3. The original and duplicate copies of challan should accompany the inputs or partially processed to the job worker s factory where processing is to be done or operations are to be undertaken. 4. The applicant should maintain a simple register for goods removed to the job worker indicating the particulars as mentioned in the Annexure - II attached herewith. 5. Procedure at job worker s factory: 1. The goods after subject to processes should be packed and stacked separately. The packages should be serially numbered and contain batch number and also should bear the name of principal manufacturer. 2. The job worker after completion of the process, should send the duplicate copy of the challan mentioning the batch number serial number of the packages kept ready for dispatch. 3. The job worker should also maintain a simple record for the receipt, manufacture and clearance of the goods indicating particulars as mentioned in Annexure- III attached herewith. 6. Manner of payment of duty, if leviable and final clearance: 1. As soon as the principal manufacture receives the duplicate copy of challan, he should make necessary entry in the records maintained by him. 2. He should prepare an Invoice in terms of Rule 11 of Central Excise Rules, 2002. 3. The invoice should also contain the particulars of job worker and his factory from where the goods are intended to be cleared. 4. The invoice should further contain the reference number and date of Commissioner s permission for clearing the final goods manufactured in the job worker s premises and intended to be cleared from the said premises. 5. In addition to the above requirement, the invoice should be marked as clearance from job worker s factory under Rule 4 (6) of the Cenvat Credit Rules, 2002. 6. In case of exports, export documents should also be prepared in pursuance of Rules 18 and 19 of the Central Excise Rules, 2002 and notifications issue thereunder. 7. The duplicate copy of the invoice should accompany the goods from the job worker s factory to the consignee. The applicant may send the original copy of the invoice alongwith the duplicate copy or through post. 8. After preparing the invoice under Rule 11 of Central Excise Rules, 2002, the applicant should immediately send the duplicate copy of the invoice to the job worker s factory from where the goods are intended to be cleared. The goods should be cleared on the same day as far as possible and in case of delay, the same should be intimated in writing to the Range Officer having jurisdiction over the job worker. The duty on the said goods should be paid as per the procedure prescribed under the Central Excise Rules, 2002. 9. The waste, if any, arising during job work should be either returned to the applicant or may be cleared from the premises of the job worker in the above said manner. 7. All Trade Associations/ Chamber of Commerce and the Members of the RAC/PGC are requested to publicise this Trade Notice among their members/ constituents and others concerned. Annexure - I Challan for removal of inputs to job-worker (Original-Pink) (Duplicate-Green) (Triplicate-White) CHALLAN Sr. No._______ Date________ (For movement of inputs or partially processed goods under Rule 4(6) of the Cenvat Credit Rules, 2002 from one factory to another factory for further process/operation and for final clearance from the premises of job-worker). Reference No. of Principal Commissioner or Commissioner s Letter granting permission for removals from the premises of Job-Worker which is valid up to________ Name and address of the Principal Manufacturer : PART-I 1. Description of goods : 2. Identification marks and numbers, if any : 3. Quantity (Nos./Weight/Litre/Metre) : 4. Value : 5. Tariff Classification : 6. Date and time of issue : 7. Nature of process/manufacturing process required to be done. : 8. Name of the job worker with Central Excise Registration No. if any. : 9. Expected duration of process/manufacturing of the goods. : Place : Signature of manufacturer/ Date : Authorised Signatory. PART-II To be filled in by the Processing factory (Job worker) in Original and Duplicate Challans. 1. Date and time to completion of finished goods entry no. in the stock register/receipt from another job-worker and entry no. and date of receipt in the account in the processing factory. : 2. Identification numbers of the packages such as marks and Numbers and batch numbers if any : 3. Quantity ready for dispatch (Nos./ weight/Litre/Metre) and Entered in Account : 4. Tariff classification : 5. Nature of processes carried out/manufacturing done : 6. Particulars of waste material and nature of disposal : Place : Signature of processor/ Date : Authorised Signatory Name of the factory and address PART-III To be filled by parent factory in Duplicate copy of the challan on receipt of the same from the processing factory. 1. Date of return of the Duplicate copy of challan from the processing factory. 2. Quantity and Entry No. of Stock Register. 3. Invoice No. under which the goods are proposed to be cleared from the Job Worker s premises. 4. Particulars of duty paid if any. 5. Particulars of Export document, if any. Signature of manufacturer/ or Authorised Signatory Annexure - II Particulars of goods sent for job work Removal of inputs or partially processed goods under Rule 4(6) of the Cenvat Credit Rules, 2002 (To be maintained by assessee who sends inputs/partially processed goods) Sr. No. Date of issue Description of goods Tariff classification Chapter Heading/ Sub Heading Quantity removed Identification marks if any Premises factory to which removed Challan No. and Date Nature of Processes required Initials of assessee 1 2 3 4 5 6 7 8 9 10 Date of clearance of finished goods from premises of job worker Quantity of finished goods cleared by job worker Difference between Col.5 and 12 Quantum of waste material received back/ cleared by job worker Invoice No. Date/ ARE No. Date Particulars of payment of duty Date of Export if the finished goods are cleared for export Remarks Initials of assessee 11 12 13 14 15 16 17 18 19 Annexure - III Particulars of receipt of inputs or partially processed goods under Rule 4(6) of the Cenvat Credit Rules, 2002 (To be maintained by Job Worker) Sr. No. Date of receipt Challan No. and Date Description of goods Tariff Heading/ Sub Heading No. Total Quantity received Identification on marks if any Nature of Processing Quantity of finished goods obtained after processing 1 2 3 4 5 6 7 8 9 Waste obtained Loss or gain in processing Quantity of finished goods cleared Invoice No. Date/ ARE-1 No. Date Particulars of payment of duty on finished goods Quantity of waste returned/ cleared on payment of duty Particulars of payment of duty on waste material Date of Export if the finished goods are clear-ed for export 10 11 12 13 14 15 16 17