Excise duty on Job Work

[Ashok Chopra]

Respected Forum,

I am service provider received semi finished goods from my vendor for powder coating, but could not sent back within 180 days.  my vendor debited me excise duty.

As per  Cenvat Credit Rule, 2004 Para 4(5)(a), the vendor can take the credit even if the goods received back after 180 days.

Is there any law, notification that vendor can request their excise authorities for extension of time.

Can i raise supplementary bill of Excise Duty, when i will sent back material to vendor after 180 days and  Canvendor take the credit on the basis of supplementary bill.

Please guide me how can i convince my vendor as he has adopted easy procedure and debited the excise duty and charged from me.

Pls guide me accordingly

AI Summary

Cenvat credit re credit after delayed jobwork: vendor may re avail credit when processed goods are returned to his premises.
Excise duty treatment for job work under Rule 4(5)(a) of the Cenvat Credit Rules, 2004 requires reversal of Cenvat where processed goods are not returned within the prescribed period; there is no provision for extension. If the goods are later returned, the vendor may re avail the Cenvat at that time. The duty debited by the vendor functions as a deposit with the government and, on re credit, the vendor can account to the job worker for amounts previously debited.