Cenvat in case of scrap

This query is : Resolved

jatin kapoor (Querist)
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17 September 2013 we are auto parts manufacturing company and we do job work for big groups, I want to ask whether the scrap arising from the job work done is dutiable and whether we can claim cenvat credit on capital goods, inputs etc sgainst it?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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17 September 2013 You should return the scrap to the principal manufacture.

jatin kapoor

jatin kapoor (Expert)
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17 September 2013 what if we sale that scrap?

jatin kapoor

jatin kapoor (Expert)
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17 September 2013 what if we sale that scrap?

jatin kapoor

jatin kapoor (Expert)
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17 September 2013 What if we sale scrapand issue cenvat invoice?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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18 September 2013 If you have paid the duty on scrap then no issue.

jatin kapoor

jatin kapoor (Expert)
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19 September 2013 Sir we have paid the duty but my questio is whether we can take cenvat of inputs and capital goods to reduce the liability of excise duty on scrap

Arun Kumar Singh

Arun Kumar Singh (Expert)
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27 September 2013 Principal manufacturer are paying the duty and only they can avail the cenvat credit of duty and scrap. Jobworker can not avail the cenvat credit because they are not paying the duty.

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