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Rate of duty @2% or 6% on Job work goods

Central Excise - Started By: - S.C. WADHWA - Dated:- 25-10-2015 Last Replied Date:- 26-10-2015 - 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 materi .....

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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 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 .....

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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 Rep .....

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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 services - Amendment to Notification No. 1/2011-C.E. In exercise of the powers conferred .....

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March, 2011, 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, c .....

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