Chartered Accountant
39039 Points
Joined September 2008
A job worker can claim the excise credit on capital goods + CED on inputs ( consumables etc) used in processing as long as he pays the ST on the processing charges. He is also eligible for input services credit used for providng the taxable services.
This would be independent of the Rs.150 lakhs excise duty exemption claimed ( where the credits are not available) However the records to establish that the machines/ inputs or services are used only for the job work on which ST paid would have tobe maintained.