The Central Board of Indirect Taxes and Customs (‘CBIC’) has clarified on various issues relating to job work for the unit working under the scheme of Manufacturing and Other Operations in Warehouse (‘MOOW Scheme’) under Section 65 of the Customs Act, 1962. The latest CBIC Circular No. 48/2020-Cus., dated October 27, 2020 also clarifies various issues in case where the job work activity is done by a unit working under the MOOW Scheme, for other units.
Job work for unit working under the MOOW Scheme
- GST provisions need to be followed in respect of procedures and time lines.
- Imported goods to be first deposited in premises before sending for job work.
- Only inputs can be sent out for job work.
- Capital goods can be sent out for repair after permission of bond officer.
- Moulds, jigs, tools, fixtures, tackles, instruments, hangers, patterns and drawings can be sent out for exclusive use by the job worker for concerned unit.
- For removal of goods from job worker’s premises, Regulations 14 and 15 of the Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019 to be followed. Date of removal from job workers premises will deemed to be the date of removal from warehouse.
- Scrap, waste and remnants generated during job work to be either returned to MOOW Scheme unit or cleared from job work unit on payment of duty.
- In case of any violation, the goods will be deemed to be cleared for home consumption on the date of clearance for job work.
Job work by MOOW Scheme unit
- MOOW Scheme unit, being a GST registered unit, can do job work for others.
- If imported inputs are used in job work, duty is required to be paid by filing Ex-bond Bill of Entry, only when job worked goods are returned to principal.
- No duty payable if job worked goods exported from premises of MOOW Scheme unit.
The Circular also states that MOOW Scheme unit can source capital goods and inputs from Special Economic Zones and Free Trade and Warehousing Zones.