Liability of excise duty in agreement between 2 companies
15-May-2023 (In Civil Law)
Respected Sir,
We are manufacturer of Three (3 ) Products.
1. LAM Coke, 2. Pig Iron 3. M.S.Billet
The production facility for the Lam coke is in running condition and for other two item production facility yet to commence.
Sir, LAM coke is one of the raw material for Pig iron. Further Pig iron is a raw material for M.S.Billet.
Now we want to give LAM COKE (produced by us) and other raw material for PIG IRON (purchsed by us on payment of Excise duty ), to some JOB WORKER.
The said Job worker will manufacturer PIG IRON and give back to us. We will pay the Jobbing Charges.
Now our query is :-
1. Who will be liable to pay the Excise on Pig iron. The Job Worker or We the principal manufacturer.
Note : pig iron is a finished product as well as an Intermediary Product for M.S.Ingot.
Sir, Please advise
Awaiting for your valued opinion,
Thanks & Regards
MY OPINION THAT i have follow your full stories as i come to the points that if you follow the whole stories as well as the process of manufacturing the raw materials ,the job workers are the secondary issues so you the principal manufacturers are the primary issues, excise paying are legally liable by principal manufacturers.
primarily without looking into documents its very difficult to advice but primarily what i found is You the principle manufacturer will be liable to pay such excise duty since the product you are selling is under your brand name and it is a product as a whole/finished product.
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