TMI BlogRate of duty @2% or 6% on Job work goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, We are manufacturers of food items falling under excise chapters 20 and 21 and paying duty @2% without getting cenvat credit, on MRP value after getting abatement. Now we have got job work for items falling in chapters 20 and 21 with their brand name. According to principal manufacturer we have to clear the goods after paying duty on MRP value after getting abatement. All the raw material will be supplied by the principal manufacturer. Now my query is whether we should pay excise duty @ 2% or 6% (Full rate) and in this case an intimation is required to be given to excise deptt or not. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regards, WADHWA - Reply By Rajagopalan Ranganathan - The Reply = Sir, Notification No. 1/2011-CE dated 1.3.2011 as amended prescribes effective rate of duty of 1% subject to the condition that no cenvat credit of excise duty or additional duty of customs on inputs or service tax on input services has been taken by the manufacturer of such goods . Notification No. 2/2011-CE date 1.3.2011 as amended prescribes effective rate of duty of 6% and in this case you can avail cenvat credit of excise duty or additional duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of customs on inputs or service tax on input services has been taken by the manufacturer of such goods. The option is yours to avail either of these Notification which beneficial to you. You need not give any intimation to department. You may indicate the exemption notification availed by you in your monthly/quarterly return which is sufficient for the purpose. - Reply By KASTURI SETHI - The Reply = Sir, In this context, I would like to add that Notification No. 19/12-CE dated 17.3.2012 may also be read. - Reply By Rajagopalan Ranganathan - The Reply = Sir, All goods falling under Chapter 20 had been omitted from Notification No. 2/2011-CE by Notification No. 19/2012-CE. - Reply By S.C. WADHWA - The Reply = Dear Expert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, Thanks a lot for prompt reply. At present rate of duty on chapters 20 and 21 is 1% if we are not availing cenvat credit. Principal manufacturers suppling us raw material at his own name and hence we are not availing any cenvat credit on their raw material. Manufacturer (principal) are getting goods at their depot address from where they will be directly sent to the parties. Now my query is whether we should pay excise duty on Job charges bill at MRP after abatement @1% or 6%. Please confirm immediately. Regards, WADHWA - Reply By Mahir S - The Reply = Sir, If the principal manufacturer supplying raw materials has not availed cenvat credit on the inputs, then I am of the view that you can clear the finished goods from your facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry premises after job work at 1 % duty payment after MRP abatement. However, department may ask to furnish proof that the principal manufacturer has not availed cenvat credit on inputs used in manufacture and supplied to you on job work basis. If credit availed by principal manufacturer, then you shall have to clear the goods after job work at6 % duty payment after MRP abatement. Intimation is required to be given to the department as job work clearance is made on payment of duty from your factory premises. . - Reply By KASTURI SETHI - The Reply = Sh. Wadhwa Ji, Rate of duty was increased to 2%. Notification is as follows:- Effective rate of duty of 2% on specified goods when no Cenvat credit availed on inputs or inputs service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s - Amendment to Notification No. 1/2011-C.E . In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2011-Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 116(E), dated the 1st March, 2011, namely :- In the said notification, - (a) in the opening paragraph, for 1% ad valorem: , 2% ad valorem: shall be substituted; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) in the Table, - (i) serial number 28, 40, 88 and 89 and the entries relating thereto, shall be omitted; (ii) against serial number 115, for the entry in column (3), the entry Spectacle lenses shall be substituted; (iii) after serial number 130 and the entries relating thereto, the following shall be inserted, namely :- (1) (2) (3) 131 Any Chapter Parts, components and accessories namely, battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobile handsets. Explanation. - For the purposes of this entry, mobile handsets include cellular phones. [Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 16/2012-C.E ., dated 17-3-2012] Effective rate of duty of 2% on specified goods when no Cenvat credit availed on inputs or inputs services - Amendment to Notification No. 1/2011-C.E. In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2011-Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 116(E), dated the 1st March, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11, namely :- In the said notification, - (a) in the opening paragraph, for 1% ad valorem: , 2% ad valorem: shall be substituted; (b) in the Table, - (i) serial number 28, 40, 88 and 89 and the entries relating thereto, shall be omitted; (ii) against serial number 115, for the entry in column (3), the entry Spectacle lenses shall be substituted; (iii) after serial number 130 and the entries relating thereto, the following shall be inserted, namely :- (1) (2) (3) 131 Any Chapter Parts, components and accessories namely, battery chargers, PC connectivity cables, memory cards and hands-free headphones of mobi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le handsets. Explanation. - For the purposes of this entry, mobile handsets include cellular phones. [Notification No. 16/2012-C.E ., dated 17-3-2012] - Rate of duty @2% or 6% on Job work goods - Query Started By: - S.C. WADHWA Dated:- 25-10-2015 Central Excise - Got 6 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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