Availment of CENVAT by Job-worker-Import by Principal

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This query is : Resolved

Balajay (Querist)

11 December 2008 We are a MNC auto-ancillary unit. Our plant is scheduled to commence operation by 2010. In the meantime, we are importing material and passing to a Job-worker who does the conversion using imported/indigenous matl. He hands over finished goods to us for sale to our customer in India.

Query : We want to import material in our name and pass on to job-worker, so that he can avail CENVAT benefit and pass the same to us.
Pls let us know how to enable the job-worker to avail CENVAT ?
We only have a Regd. office. in India and cannot inward the import material into our premises. The imported material has to go to the job-worker premises directly. The title of the goods should be with us. (Earlier practice of endorsement of B/E has been dispensed with now).

Regards,
J Balasubramaniam

BALU V

BALU V (Expert)

12 December 2008 First of all you should get registered yourself as a manufacturer in India as per the Central Excise law. Then only the question of availment of CENVAT by the job worker arises. Mere having head office in India and import of material would NOT entitle you aviling the credit. You should either be a manufactuer are a dealer of excisable goods in order to avail the benefit of CENVAT credit.

Balajay

Balajay (Querist)

17 December 2008 Dear Mr. Balu & Fraternity of CA Club,
Thanks very much for your kind response.

I am fully aware that one cannot avail CENVAT without being registered under Central Excise. Request you to carefully read my query again. The manufacturing activity per se is going to be done by a 3rd party manufacturer, to whom I will be supplying the imported material. He is registered with Excise and can avail CENVAT. The issue here is the import WILL be only in MY NAME, due to specific reasons. The material if imported in my name, can it be delivered to the 3rd Party manufacturer, directly from the Port, after customs clearance. If so, under what document. The objective to enable the 3rd Party mfr. to avail CENVAT on the imported material.

Would appreciate your immediate response.

Regards
J Balasubramaniam