Reversal of duty on job work
This query is : Resolved
03 August 2009
We are manufacturer as well as job worker regd. with excise. We also undertake jobwork of Fabrication and galvanizing of dutiable & exempted goods. We produces dutiable & exempted goods and do not maintain separate records. We avail cenvat credit on free issued inputs received from customer for job work & own purchased inputs like, steel, zinc, Consumables, Fuels etc. As per Rule 6(3)(b) of cenvat credit rules, 2004, we reverse 10% duty on clearance of exempted goods (now 5% to be reversed).
For non-exempted goods received in our factory for job work, how much credit should be reversed by us.
In case, if customer is regd. with excise, and paying excise duty on goods so processed by us, are we liable to reverse the duty?
If customer is not regd. with excise, and not paying excise duty on goods so processed by us, at which rate duty should be reversed? how the valuation is to be done?
For non-exempted goods received in our factory for job work, how much credit should be reversed by us.
In case, if customer is regd. with excise, and paying excise duty on goods so processed by us, are we liable to reverse the duty?
If customer is not regd. with excise, and not paying excise duty on goods so processed by us, at which rate duty should be reversed? how the valuation is to be done?
Madhukar N Hiregange
(Expert)
13 August 2009
Either proportionate or reversal fo 5% or proportionate duty reversal iun terms of Chandrapuir magnets SC case.
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