Suppose-A is the supplier of raw material. -B is the buyer -C is the job worker
B purchased the goods from A and sent to C for job work but B send the goods directly to C (Job worker)without receing the goods and B want to sell the goods from the place of C (Job worker) .B got the permission from excise deppt.to do so but excise dept given permission saying that B is not entilied to take cenvat credit as B did not recvied the goods from A or not job worker after job work.but he give the permission to take cenvat credit and pay the excise duty. but I am confused how job worker take cenvat credit and pay excise duty since when the goods sent to b by A .A mentioned the name of B as buyer and consignee in his excise invoice. when invoice didnot have the ecc no and name of b.
03 June 2010
The credit cannot be denied for technical reasons. As long as the materials were recived and used in manufacture of goods on which ED paid. cenvat credit is a facilittating/ beneficient legislation.
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