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Exempts of goods manufactured in a factory as a job work
Notification
No. 70 dated 17th July 1992 (As amended by 140/94, 66/95, 96/95, 7/98)
In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excises and Salt Act,
1944 (1 of 1944), the Central Government, being satisfied that it is necessary
in the public interest so to do, hereby exempts goods manufactured in a factory
as a job work (hereinafter referred to as �said goods�), and used by the undertakings specified in the Table hereto annexed
(hereinafter described as �said manufacturer�) in or in relation to the
manufacture of final products for supply to the Ministry of Defence for official
purposes from the whole of the duty of excise leviable thereon, which is
specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).
Explanation I: For the purposes of
this notification, the expression �job work means processing or working upon
of raw materials or semi-finished goods supplied to the job worker, so as to
complete a part or whole of the process resulting in the manufacture or
finishing of an article or any operation which is essential for the aforesaid
process.
Explanation II: For the purposes of this
notification, the expression �said goods� does not include-
(a) machines, machinery, plant, equipment,
apparatus, tools or appliances used for producing or processing of any goods or
for bringing about any change in any substance in or in relation to the
manufacture of the final products;
(b) packaging materials in respect of which any
exemption to the extent of the duty of excise payable on the value of the
packaging materials is being availed of for packaging any final products;
(c) packaging materials the cost of which is not
included or had not been included
during the preceding financial year in the assessable value of the final
products under section 4 of the Central Excises and Salt Act, 1944 (1 of 1944);
(d) cylinders for packaging gases;
(e) bags or sacks made out of fabric (whether or
not coated, covered or laminated with any other material) woven from strips or
tapes of plastics; or
(f) plywood for tea chests.
2. The exemption contained
in this notification shall be subject to the following conditions, namely: -
(i) the said manufacturer
gives an undertaking to the Assistant Commissioner of Central Excise having
jurisdiction over the factory of the job worker that the said goods shall be
used -
(a) in
or in relation to the manufacture of final products in his factory;
(b) in
the manufacture of goods by any other job worker for further use in or in
relation to the manufacture of the final products in his factory.
(ii) the said manufacturer shall
produce an evidence that the said goods have been used.
(iii) the final product shall be supplied
to the Ministry of Defence for official purposes and the said manufacturer shall
produce evidence to the effect that the final products have been so supplied;
and
(iv) the said manufacturer
undertakes the responsibility of discharging the liabilities in respect of
central excise duty leviable on the final products.
Table
1. Hindustan Aeronautics Ltd.
2. Bharat Electronics Ltd.
3. Bharat Dynamics Ltd.
4. National Instruments Ltd.,
Calcutta.
5. National Aeronautical
Laboratory.
6. Indian Ordnance Factories
belonging to the Central Government.
7. Mishra Dhatu Nigam
8. Bharat Earth Movers
Limited.
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