MUKESH PAREEK (service) (64 Points)
10 December 2011We are manufacturer and doing Job work for one of our Customer under central excise
notification 214/86 CE dated 25/03/86.
Currently all RM/PM provided to us by our customer under Annexure - II to make his final product
but we want to use one of our own purchased packing material to manufacturing of their product.
I want to know that can we use our own purchased (cenvat credit taken) packing material in doing
job work for our customer ?
Pls.reply.
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 10 December 2011
Dear Mr. Mukesh,
In my opinion where you are taking the benefit of Exemption under the above notification, final products manufactured as job worker become exempted. Hence Credit of inputs used in manufacture of such goods will not be available. There seems to be no bar on using your own purchases as far as credit on such items is not taken by you.
CA Garav Gulati
(Management Consultant)
(106 Points)
Replied 19 December 2011
credit can be taken on own purchase there is no bar in the act for using own material's CCR.
This is an opinion.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 19 December 2011
Sell packing material to the job work customer on payment of VAT and by passing on cenvat credit. DEclare in the invoice that delivery at own premises for job work. Get chalan from job work customer.
CAclubindia
