Cenvat credit taken on job worker invoice

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This query is : Resolved

DILEEP NAIR P (Querist)

24 June 2015
What are the solutions when Job worker has wrongly charged the service tax with out consider the notifications Notifications 25/2012, and 08/2005 which exempt the job worker from service tax Liability when appropriate duty has been cleared by the principle Mfr. on Finished goods

consequently the principle manufacturer has booked the cenvat on such invoices which is now being Clarification from excise department

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 June 2015 Only conditional exemption given to the job worker from service tax. When cenvat credit rules are complied cenvat credit can't be denied.

DILEEP NAIR P

DILEEP NAIR P (Querist)

24 June 2015 sir, could your please elaborate the advise..so that i can convince the excise persons...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 June 2015 Provided that the said exemption shall apply only in cases where such goods are produced using raw materials or semi-finished goods supplied by the client and goods so produced are returned back to the said client for use in or in relation to manufacture of any other goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as amended by the Central Excise Tariff (Amendment) Act, 2004 (5 of 2005), on which appropriate duty of excise is payable.
In view of the above conditional exemption the job worker opt to pay service tax hence the cenvat credit need to be allowed as per cenvat credit rules.

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