Capital Goods sent for job work purposes., Central Excise

[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

Posts / Replies

[Pradeep Khatri]

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