Cenvat credit on job work

CA. A. K. GUPTA (HOD (Accounts Dept)) (1426 Points)

01 April 2012  

Dear Sir/Madam,

                  Plz solve my problem.

(1) co A sends raw material(cost=Rs 50,000) to co. B for job work on challan 57f4 to co B. but co B sends finished goods on sale invoice [ ( Rs.1,00,000),    raw material =50,0000+  exps on manufacture = 40,000 +  profit= 10,000) ]    & does not close challan within 180 days. what will be the consequences in this situation.?

 

(2) suppose after 180 days, co A sends sale invoice of raw material sent by challan to co B with excise duty. in this situation, whether co A has to reverse cenvat credit on raw material  or not? 

 

(3) in situation(2), whether co B can take cenvat credit on invoice sent by co A?

 

 

plz help urgently