JOb Work

I am not an expert in this but still place my views if the raw material is supplied by supplier directly to job worker for manufacture of Branded Goods the thing is in the Invoice of the supplier should be like this  sold to Manufacturers Name and consigned to Jobworkers Name such Incorporation is essential  for 52A Invoice.In the first case sending material from Manufactureer to Jobworker is governed by 57F4.On both the cases 180 days is allowed for rectification and return

The manufacture is entitled to credit when the raw material is received at the place of job worker. The material should come back within 180 days from the date of credit.

in the above situation when goods aree traveling to job worker directly ----- the manufacturer is making the entry of CENVAT on inputs at the time he finally receives the semi finished inputs/goods from job worker ----- is it right ?

The manufacturer has to issue 4(5)(a) challan as soon as the goods sent directly to job worker reach the job worker's factory. He can take the credit of duty only after he receives the processed inputs along with the invoice under which the goods moved to the job worker;s factory. The question of receipt of processed goods within180 days does not arise since cenvat credit is not availed at the time of sending the inputs to the job worker.

@ Jeevesh- it is right.

challan is required if the manufacturer has taken credit (if challan is not issued, the raw material balance will be more than actual). However, if no credit is taken when the goods are received at job worker end, and it is taken only when the goods are finally recived, no challan is required.