Circular No. 265/99/96-CX dated 12/11/96
Subject: Movement of inputs/semi-processed goods for job work under -Modvat Scheme - Procedures
References have been received by the Board in regard to the procedure to be
followed for movement of inputs/semi processed goods for job work after insertion of
Rule 57F(3A). The points raised and the clarifications there of are as follows-
Point No.I
What procedure should be followed for movement of in-puts/semi
processed goods under Rule 57F(3) after insertion of Rule 57F(3A),
where the inputs or semi processed goods are sent by the manufacturer to
the job worker and returned thereafter.
Clarification:
In such cases procedure prescribed under Board"s Circular 33/33-Cx,
dated 4.5.94 can be followed with following modifications:
(i)
The Challans prescribed under Annexure II to the said circular,
shall be modified in accordance with Challan specified in Annexure to
Notification No. 28/96-CE(NT) dated 31/8/96.
(ii)
The proforma of the Register maintained by the parent factory as
prescribed under Annexure-IV to the above stated circular should be
substituted by the revised proforma at-, attached herewith.
(iii)
The manufacturer should debit the amount before removal of the
inputs/semi processed Inputs to job work and take the recredit after the
inputs or partially processed inputs as " the case may be have been
received back in full.
Point No.II
What procedure should .be followed where the first job-worker/processor
do not return the processed goods received under Rule 57F(3) read with
Rule 57F(3A) but sent to the second jobworker/processor for further job
work/processing and who in turn return such processed goods to the
manufacturer.
Clarification:
For the movements of inputs/semi processed goods from the manufacturer
to the first job worker/processor, the procedure stated above should be
followed. For further movement of the goods to another job worker, as
usual the Challan described as Annexure III to the Board"s circular
dated 4th May, 1994 should-be used.
The first processor will return as usual the duplicate copy of
the challan Annexure II of Board"s Circular dated 4th May, 1994 as
modified in accordance with Notification 28/96-CE(NT) to the parent
factory from whom the goods were received for processing after he has
sent the goods to another processor for further processing. The
manufacturer, however, will not take any credit on the basis of this
challan till the second processor returns the goods after finishing the
job under the cover of his challan (in the format as prescribed in
Annexure III to the Board"s Circular dated 4th May, 94) filling in part
II of the said Challan. On receipt of the processed goods in the
factory and the duplicate copy of the challan in Annexure III, the
parent factory will co-relate the duplicate copy of the challan received
back from the first processor with the duplicate copy of the challan
received from the final processor. He would also duly fill in Part III
of the modified version of challan Annexure II of Board"s Circular dated
4th May, 1994 and take recredit of the amount debited earlier.
Point No. III
What procedure should be followed where the inputs are not received in
the first instance into the factory of the manufacturer but they were
directly despatched from the supplier of the inputs to the job worker on
account of the purchaser of the inputs.
Clarification
The procedure prescribed in Board"s circular dated 4th May, 1994 should
be followed inducing the use of challans specified therein Annexure U of
said circular. It is clarified that reversal of credit is not envisaged
in such cases. Credit in such cases for the duties suffered on the
inputs sent to the job worker and contained in the intermediate products
can be raised only on receipt of intermediate products as envisaged
under the provisions of Rule 57 and notification No. 351/86-CE as
amended from time to time.
Point No. IV:
What procedure should be followed where a manufacturer sends the raw materials or semifinished goods to a job worker for manufacture in his
factory as a job work, and return thereafter as envisaged in
Notification 214/86 dated 25.3.86 (as amended).
Clarification:
The procedure prescribed in Board"s Circular dated 4th May,1994 . should be followed including the use of challan specified therein.
2. Separate challan books should be used for movement of inputs/semiprocessed
goods/processed goods under Rule 57 F(3)/Notification 214/86 and Rule 57 J while
following the above mentioned procedures.
3. Separate stock register should be maintained by the manufacturer in revised
Annexure IV attached-herewith and by the job worker in Annexure V (Annexure V of
Board Circular dated 4th May, 1994) for the movement of goods under Rule 57 F(3)
/Notification 214/86 and or Rule 57 J. However, it is clarified, that any particular
column(s) which is/are not applicable to any type of movement, the same may be
omitted.
However, the serial number of the columns shall not be changed. For example,
where SI.No. 10, 11, 12 are not applicable after SI.No. 9, the next should be SI.No. 13
of the columns.
4. Board vide its telex No. 206/l/96-CX.6(pt) dated 11.10.1996 had informed that
separate statement for removal under Rule 57 F (3A) is being prescribed. In this
regard, monthly abstract of the stock Register of goods sent for processing/job
Working maintained under Annexure IV should be submitted in respect of the movement
under Rule 57 F(3)/Notification 214/86 Rule 57 before or by 10th of the succeeding
month. SSI units should however submit the abstract on quarterly basis.
5. Challans generated on Computer should be kept inbound form at end of the month.
6. Board in Annexure B-2 of Circular No. 33/33/94-CX.8 dated 4th May, 1994 has
prescribed a monthly statement to be submitted by the assessee maintaining
consolidated RG ,23 Part-11 Register for inputs used in the manufacture of exempted
and dutiable final products. This proforma of this statement was modified vide
Circular No. 232/66/96-CX dated 25th July, 96. This statement is being dispensed with
as the particulars of reversal will be reflected in revised proforma of RT-12 return
and FLA and RG 23 Accounts.
Sd/-
(I.P. Lal)
Deputy Secretary to the Govt. of India
F.No. 267/112/96-CX.8
Revised Annexure-IV
Stock Register of Goods sent for Processing/fob Working
Removal of inputs or partially processed goods under Rule 57F(2) and/or Notification
No. 214/86-CE dated 25.3.86 (to be maintained by assessee who sends raw
materials/semi-finished goods).
Date of Issue Description of Tariff Quantity Identification
goods (inputs) classific- removed Weight/ Marks, if any
semi-processed ation numbers/
inputs pieces/
units
1. 2. 3. 4. 5.
Premises/ Challan No. & Nature of Declared value Rate and Amount
factory to date processing of inputs of credit
which required cleared reversed
6. 7. 8. 9. 10.
SI.No. & Initials of Date of receipt Date of Quantity of
date of of processed Clearance of processed / finished
supplier/ manufacturer inputs processed goods received/
Debit entry inputs from cleared by job
in PLA/RG23 factory of job worker Wt./
A Part-11 worker Length/ pieces/
units
11. 12. 13. 14. 15.
Difference Quantum of waste materials Invoice No. & date & particulars
between Col. received back/cleared by of payment of duty
4 and 15 job worker
16. 17. 18.
Particulars SI.No. and date of Amount of recredit Initials of
of payment entry in PLA/RG 23 taken manufacturer
of duty on Apart-ll
shortage/
waste if any
or their mode
of disposal
19. 20. 21. 22.
Note :
Separate stock Register should be maintained for movement in each,
category viz. Rule 57F(3) read with Rule F(3A), Notification .No.
214/86-CE dated 25.3.86 as amended and. Rule 57J (where Inputs are
directly sent to job worker"s premises and credit is taken by the
manufacturer after receipt of the intermediate goods). Nil entry may be
filled in column which is not applicable.
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