Section 143. Job work
procedure.-
(1) A registered
person (hereafter in this section referred to as the "principal") may
under intimation and subject to such conditions as may be prescribed, send any
inputs or capital goods, without payment of tax, to a job worker for job work
and from there subsequently send to another job worker and likewise, and
shall,-
(a) bring back
inputs, after completion of job work or otherwise, or capital goods, other than
moulds and dies, jigs and fixtures, or tools, within one year and three years,
respectively, of their being sent out, to any of his place of business, without
payment of tax;
(b) supply such
inputs, after completion of job work or otherwise, or capital goods, other than
moulds and dies, jigs and fixtures, or tools, within one year and three years,
respectively, of their being sent out from the place of business of a job
worker on payment of tax within India, or with or without payment of tax for
export, as the case may be:
Provided that the
principal shall not supply the goods from the place of business of a job worker
in accordance with the provisions of this clause unless the said principal
declares the place of business of the job worker as his additional place of
business except in a case -
(i) where the job
worker is registered under section 25; or
(ii) where the
principal is engaged in the supply of such goods as may be notified by the
Commissioner:
1[Provided further
that the period of one year and three years may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding one
year and two years respectively.]
(2) The
responsibility for keeping proper accounts for the inputs or capital goods
shall lie with the principal.
(3) Where the inputs
sent for job work are not received back by the principal after completion of
job work or otherwise in accordance with the provisions of clause (a) of
sub-section (1) or are not supplied from the place of business of the job
worker in accordance with the provisions of clause (b) of sub-section (1)
within a period of one year of their being sent out, it shall be deemed that
such inputs had been supplied by the principal to the job worker on the day
when the said inputs were sent out.
(4) Where the capital
goods, other than moulds and dies, jigs and fixtures, or tools, sent for job
work are not received back by the principal in accordance with the provisions
of clause (a) of sub-section (1) or are not supplied from the place of business
of the job worker in accordance with the provisions of clause (b) of
sub-section (1) within a period of three years of their being sent out, it
shall be deemed that such capital goods had been supplied by the principal to
the job worker on the day when the said capital goods were sent out.
(5) Notwithstanding
anything contained in sub-sections (1) and (2), any waste and scrap generated
during the job work may be supplied by the job worker directly from his place
of business on payment of tax, if such job worker is registered, or by the
principal, if the job worker is not registered.
Explanation.-For the
purposes of job work, input includes intermediate goods arising from any
treatment or process carried out on the inputs by the principal or the job
worker.
