TMI BlogSeizure of Principal Manufacturer's Stock Lying at Job Worker's PremisesX X X X Extracts X X X X X X X X Extracts X X X X ..... The Principal Manufacturer (PM) is not registered under the excise laws and its Job Worker agrees to discharge all the related excise liabilities under Notification No 36/2001 . The PM retains the right and title of the stocks both raw materials and finished goods lying at the Job Worker's premises. However the excise liability on the stock is being discharged by the Job Worker. If t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he job worker fails to discharge the excise liability due against the stocks of the PM, then can the Excise Dept seize the stock of the PM lying at the job worker's premises. - Reply By KASTURI SETHI - The Reply = CE dutiability arises at the time of removal of ecisable goods from the factory. In the situation explained by you if the job worker (who is responsible for discharging duty liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity) removes the goods in contravention of CE law goods can be seized from the job worker's premises. Goods are not to be removed without proper invoice whether premises belong to job worker or principal manufacturer. However, registration is mandatory for principal manufacturer except for small scale units. They are to follow the procedure laid down in notification nos. 83 84/94 . - R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply By KASTURI SETHI - The Reply = Goods lying in the factory can also be seized but such seizure is not successful because duty is to be discharged at the time of removal from the factory. - Reply By Vivek Gupta - The Reply = The job worker is not required to pay duty on every clearance. Removal of goods is done on a daily basis on a proper invoice. But excise duty for that month is paid only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once, by 6th of the next month before filing of the return. Hence the job worker can very easily clear goods for the entire month without paying any duty. - Reply By KASTURI SETHI - The Reply = Who is to pay CE duty---will write the words duty payable on the invoice and also calculate the same. Thus he owns the responsibility to pay duty by due date. Hence it is not without payment of duty. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty is deferred till the due date fixed. - Seizure of Principal Manufacturer's Stock Lying at Job Worker's Premises - Query Started By: - Vivek Gupta Dated:- 7-5-2017 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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