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This query is : Resolved

Sushma Mevacha (Querist)

15 July 2009 Sir, We are the menufacturare & do export under UT-1 , without payment of duty under DEPB scheme. We are also sending our material for job work. Now when we receive the material after Job Work.. We reverse the CENVAT from the Raw Material that has used for making the finished goods.
How it will effect on our CENVAT register... I mean we reverse the whole CENVAT credit that has taken on the Raw Material. So is it protitable for us or not? Please give the reasons for the answers?

M Prabhakar Menon

M Prabhakar Menon (Expert)

15 July 2009 Since you are sending materials for job work you must be having a job work register where both issues and receipts of goods before and after job work must be accounted In job work there is no levy of excise duty, what is required is that the goods received after job work should perfectly match with goods sent for job work challan wise less normal loss allowed by the department Cenvat on raw material is to be set of against ED on goods sold If there is no duty on goods sold the you cannot avail cenvat benefit

Sushma Mevacha

Sushma Mevacha (Querist)

15 July 2009 So can you please clear the LOGIc as per your concern to reverse the CENVAT credit that is done by the menufacturare?

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)

16 July 2009 If the goods are not received within the time limit from the job worker then you have to pay the duty and reverse as and when you receive the material from the job worker.

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