Job work

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Kindly clarify on excise procedure to be complied with on the following issue:

We are principal manufacturers and have 2 job workers doing the same type of  job.  Normally we send materials to each job worker directly showing job worker's name & address as consignee in excise invoice.   JOb worker avails input credit and pays duty  while clearing the products to principal manufacturer.

Due to emergency,  we want to transfer some materials from one job worker to another job worker and second job worker should be in a positon to avail credit on items transferred to him.

 

Pl advise on excise procedures to be followed

 

 

ksiyer

 

Replies (1)

Under Rule 4(5)a of the Cenvat Credit Rules,2004, a jobworker who has taken the cenvat ceredit,may send inputs/partially processede inputs to the jobworker for job work for certain processes necessary for the completion of the manufacture of the final product. He is not required to debit the duty while sending the inputs etc.

But you have cleared the inputs against payment of duty. As per various CESTAT orders, credit can be taken if any duty was paid. Hence second jobworker avail credit of the duty paidby the first jobworker.

 

Raksh*t Verma 08800615751


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