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Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2013 Which rule can apply for the material removed from the manufacturer to jobworker?

I was confused about Rule of 4(5)A of cenvat credit rules, 2004; Rule 16A,16B,16C; and Notification No: 214/86

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 Anybody can resolve my doubt please?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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14 July 2024 Let's clarify the rules and notifications related to the removal of goods from a manufacturer to a job worker under the Cenvat Credit Rules, 2004:

1. **Rule 4(5)(a) of Cenvat Credit Rules, 2004:**
- This rule pertains to inputs or capital goods sent to a job worker for further processing, testing, repair, reconditioning, or any other purpose, and their subsequent receipt back to the manufacturer without payment of duty. It allows the manufacturer to take credit of the duty paid on such inputs or capital goods.

2. **Rule 16A, 16B, 16C of Cenvat Credit Rules, 2004:**
- Rule 16A: Deals with removal of inputs or capital goods as such or after being partially processed, for job work or other processes.
- Rule 16B: Specifies the conditions for availing Cenvat credit on inputs or capital goods sent for job work.
- Rule 16C: Pertains to the procedure for availing credit on inputs or capital goods received back after processing at the job worker's premises.

3. **Notification No. 214/86:**
- This notification relates to exemption from central excise duty on goods specified in the notification when sent to a job worker for job work, subject to conditions mentioned therein.

### Application of the Rules:

- **Rule 4(5)(a)**: If you are sending inputs or capital goods to a job worker and intend to receive them back after processing, this rule applies. It allows you to retain the credit of duty paid on these goods.

- **Rule 16A, 16B, 16C**: These rules outline the procedure for removal of goods for job work, the conditions for availing Cenvat credit, and the procedure for taking credit on receipt of processed goods back into your premises.

- **Notification No. 214/86**: If your goods are covered under this notification, they may be eligible for exemption from excise duty when sent to a job worker. However, this exemption is subject to specific conditions mentioned in the notification.

### Conclusion:

When goods are removed from a manufacturer's premises to a job worker's premises, it is crucial to follow the applicable rules and notifications to ensure compliance with Cenvat Credit Rules and other excise duty regulations. Each rule and notification serves a specific purpose related to the movement, processing, and credit treatment of goods sent for job work. It's advisable to consult with a tax expert or a chartered accountant to determine the exact applicability of these provisions to your specific situation and ensure compliance with all regulatory requirements.

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