Production of finished goods at other location

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2016 We are a manufacturer due to capacity constraint we get our final product from our other branch unit on job work basis thru below procedure. please suggest if we may deny to take cenvat credit due to non manufacturing activity.
1. Buy Raw material and take Cenvat Credit
2. Send the RM on Job work challan to other branch unit
3. get the final product after job work
4. Dispatch the material on Manufacturer Excisable invoice after final QC inspection.

Rupesh Jain

Rupesh Jain (Expert)
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17 June 2016 NO there is not cenvat credit disallow if you are getting the goods on valid invoice, and sent on challan and return back with 180 days from the date of sending the material and sale of the goods on the invoice.