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Job work query

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MUKESH PAREEK

service

37 Points Posted on 10 December 2011

We are manufacturer and doing Job work for one of our Customer under central excise

notification 214/86 CE dated 25/03/86.

Currently all RM/PM provided to us by our customer under Annexure - II to make his final product

but we want to use one of our own purchased packing material to manufacturing of their product.

I want to know that can we use our own purchased (cenvat credit taken) packing material in doing

job work for our customer ?

Pls.reply.

Replies (3)

CA Prabhat Gupta

Manager (Indirect Taxes)

644 Points Posted on 10 December 2011

Dear Mr. Mukesh,

In my opinion where you are taking the benefit of Exemption under the above notification, final products manufactured as job worker become exempted. Hence Credit of inputs used in manufacture of such goods will not be available. There seems to be no bar on using your own purchases as far as credit on such items is not taken by you.

CA Garav Gulati

Management Consultant

102 Points Posted on 19 December 2011

credit can be taken on own purchase there is no bar in the act for using own material's CCR.

This is an opinion.

CA Unnikrishnan Nair N

Chartered Accountant

2114 Points Posted on 19 December 2011

Sell packing material to the job work customer on payment of VAT and by passing on cenvat credit. DEclare in the invoice that delivery at own premises for job work. Get chalan from job work customer.