A company has received free issued material for job work and the party who supplied the material has paid excise on that.therefore the receiving party has book the cenvat credit on it. but at the time of final supply no excise was paid by the party because it was a free issued material.
so what should be the treatment of cenvat credit book by the party.
22 March 2014
Entire duty paid by supplier-manufacturer is available as credit to user of inputs. But input should be used in the factory by the manufacturer of final product.
22 March 2014
the material was received for jobwork. and when we dispatched the same no excise was charged as it was a free issued material.but cenvat credit has been taken of duty which was paid by the manufacturer...so what should be the treatment of that credit.........
CAclubindia
