Cenvat credit

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Amarjit Singh (Querist)

05 September 2013 we have hired a third party to make a Die for our company. The party makes the die and raised a tax invoice to us But the die is still used by such third party for making the finished products for us.
Now the question is that, as there is no physical movement of the die(capital goods), then how can we take the CENVAT credit involved in such tax invoice.

Arun Kumar Singh

Arun Kumar Singh (Expert)

05 September 2013 Capital goods used at job worker's premises for work on inputs are not eligible. However, the matter is arguable. Rule 4(5)(a) of cenvat credit rules specifically provides that inputs as well as capital goods can be sent to a job worker as such or after be partially processed, for processing, testing, repair, reconditioning or for any other purpose. The only requirement is that these should be brought back in 180 days.

Amarjit Singh

Amarjit Singh (Querist)

11 September 2013 Thanks Mr. Arun.
sorry, I forgot to insert the main issue in my question.our Job worker makes the die and he posses such die with himself for manufacturing Finished product for us.
It means we do not received the die in our factory.For CENVAT purpose, the basic condition is that the Capital Goods must received in the factory.The jobworker raises a tax invoice for such die including excise.
Now, in such case, can we take the CENVAT involved in such tax invoice.

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