Effect on Excise benefit because of Outsourcing, Central Excise

[Rajendra Simha]

Hi

We are a manufacturing company in Mysore and we are planning to outsource receiving inspection to a 3rd party. We would release a PO with Billing address as our company and shipping address as our 3rd party company handling our inspection. He will inspect the parts and dispatch the goods to our factory located in the same excise area ( 2KM from our factory) I need few clarifications

1 Can we move the parts to 3rd party address against our order with different billing and shipping addresses?

2 ON what document our 3rd party vendor should dispatch the goods to us. Can he send on simple delivery challan along with services invoice for inspection?

3 GR will be done at our factory after receipt of goods from 3rd party vendor. Under these circumstances do we still get the excise benefit or do we loose it since billing and shipping addresses are different?

Regards

CNR

Posts / Replies

[Arun Kumar Singh]

You can sale the goods from 3rd party address against your order with different billing and shipping. Other manufacturer in the name of your brand then ssi exemption will be not be available. Your goods will be removed on challan and duty will be payable on sale invoice. You and job worker can take the cenvat credit of input and input services.