Whether CENVAT credit will be allowed in respect of the duty paid on inputs or input service
used in the manufacture of intermediate products by a job worker?
4 Replies
Mayank Saraogi
(Learner)
(170 Points)
Replied 12 September 2011
credit will be available if the final product is dutiable
Please correct me if i m wrong
Digambar
(Senior Accountant)
(23 Points)
Replied 12 September 2011
The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning, or for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the CENVAT credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer or provider of output service shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting the CENVAT credit or otherwise, but the manufacturer or provider of output service can take the CENVAT credit again when the inputs or capital goods are received back in his factory or in the premises of the provider of output service
CA Lalit Kandoi
(Chartered accountant)
(1053 Points)
Replied 12 September 2011
if job worker paid for input or input services, then credit can book by the manufacturer if invoice is made in the name of such manufacturer not job worker
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 12 September 2011
Rule 3(1) provides that CENVAT credit will be allowed of the duties, tax or cess paid on inputs/ input service
used in the manufacture of intermediate products by a job worker if –
(i) The job worker is availing the exemption given under Notification No. 214/86 – CE, and
(ii) The said intermediate products are received by the manufactures of final products for use in or in
relation to the manufacture of final products.
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