Direct import by Job-worker(3rd Party mfr) CENVAT availment

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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

Rajesh Kumar

Rajesh Kumar (Expert)

15 January 2009 Your query is not very clear. If the job worker will avail cenvat, he has to pay duty. As you are not the manufacturer, how will he passes the cenvat benefit to you.
If only passing of cenvat to the job worker is involved, after clearance from the custom, you yourself endorse the bill of entry in the name of job worker, get the Goods receipt prepared in the name of job worker- he will be able to take cenvat on the basis of transit transfer.

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