excise duty - job work

The definition of manufacture and manufacturer are linked. The person who converts/ conducts deemed manufacture activity would be the manufacturer.

Procedurally provisions have been provided that in case the princiapl makes himslef liable to pay the duty if any applicable, the same can be done under job work. However where the princiapl is not a manufacturer then the job worker would be liable. [ except for goods of chapter 61,62,63]

Int he example if under a permission under 214 or 83 & 84 latter applicable only for SSI.

then there would be no liability on the job worker and he would not be liable as the balance is less than 150 lakhs. The job work charges would not be added.

If there is no permission then then the value of material maybe added or if sold in retail thereafter the value at which the princiapl sells would be applicable under Rule 10 of the valuation rules.