Removal of Input as such

First of all, I did not understand why M/S XYZ issued the material under the cover of excisable invoice when such material could have been removed under Rule 57 (f) (3) / 57 (f) (4) under the cover of a challan. Secondly. When the goods are removed to send further to job worker for processing, the duty is reversed by the manufacturer and after receiving the processed goods from the job worker within 180 days, the manufacturer can again avail the credit of duty reversed earlier.

In your case, you are the job worker for M/S XYZ and you are not entitle to avail any CENVAT credit on goods sent by M/S XYZ for processing. Why you need to reverse the duty when you have not availed any credit of duty in such transactions?? Please go thru the matter or consult a good excise consultant. You can definitely come out successfully.