Excise duty credit for goods recieved for processing
This query is : Resolved
Deepak Agrawal
(Querist)
03 March 2009
Dear ALL,
My client is a heavy engineering company. It gets material from customer for processing / fabrication. Material is sent by supplier of customer to us. Customers do not send it from his factory....
Our customer's supplier sends his from his factory...
Supplier's Invoice contains our name as "ship to party"
It contains excise element...
So as per legal law of excise, let me know whether my client who recieves the material & proceeses it can take the excise credit as he is not the owner.
Please substantiate with rule number/ section number
My client is a heavy engineering company. It gets material from customer for processing / fabrication. Material is sent by supplier of customer to us. Customers do not send it from his factory....
Our customer's supplier sends his from his factory...
Supplier's Invoice contains our name as "ship to party"
It contains excise element...
So as per legal law of excise, let me know whether my client who recieves the material & proceeses it can take the excise credit as he is not the owner.
Please substantiate with rule number/ section number
Rajesh Kumar
(Expert)
03 March 2009
It appears that you are doing the job work and paying duty. You are entitled to take credit. Ownership of goods is irrelevant for cenvat credit under Central Excise- what is relevant is use of goods in or in relation to manufacture. If you give me the details of the transaction, i may be able to help you with a few case laws etc.
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