Levy of excise duty on job work to another unit of same co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2014 A unit of a Pvt. Ltd. Co. made job work for another unit of same
company. After job work, materials transferred vide invoice
bearing "transfer of goods to branch office". Excise duty was levied
on job work.

Query is :

Whether it is correct to levy excise duty.
Can another unit avail cenvat of same since it is paying excise duty on final products.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 October 2014 If process amounts to manufacture then duty will be payable on jobwork activity. If job worker have been paying the duty then principal manufacturer can take the cenvat credit.