Special procedure for removal of excisable goods for carrying out certain processes under rule 16 C of the Central Excise Rules
By notification no. 26/2006-CE(NT), dated 28.12.06, rule 16C of the Central Excise Rules, 2002 has been substituted with a new rule. In the new rule, it has also been provided that a manufacturer can send excisable goods to a job worker for carrying certain processes not amounting to manufacture also.
For example, a manufacturer of HR/CR coil can send the products for cutting/slitting, even though said processes does not amount to manufacture. As per new Rule 16C, a manufacturer can be permitted to remove excisable goods manufactured by him for carrying out test or any process not amounting to manufacture to any other premises including to a job worker without payment of duty. The other person or a job worker may be a registered or unregistered person. The rule further provides that after carrying out specified processes, the goods can be cleared from the premises of the said other person or from the premises of the job worker on payment of duty.
Board wants that
1. Proper records of such goods should be maintained both by principal manufacturer and job worker.
2. Any waste/scrap arising at the premises of the said other person/job worker while carrying out the test/other processes should either be cleared on payment of duties or it should be returned back to principal manufacturer.
3. The value at which the principal manufacturer (person who has sent the goods for test/carrying out processes) sells the final goods to the customer should be taken as the value for payment of appropriate duty.
4. This aspect should also be incorporated in the permission.
5. The permission should be given only in deserving cases and only for one financial year at a time.
CIRCULAR NO. , Dated : January 31, 2007