SEZ AND JOB WORK

[MUKUND THAKKAR]

Dear Expert,

A- sending  the  raw material  to  B - for  job  work  cenvat  documents( invoice)  contain  Buyer is A  and  Consignee is B, In such  case B will  avail the cenvat credit and return the goods  to  A. but  now  A- is  getting  the  order  from SEZ , and  he  want  to  clear  the material  from the  primises of  B. In such case B will genrate  the  Invoices  in favaour of  C  he  has  situated  in SEZ,

In above  situation B can  reversed  the  cenvat  credit ? because  in  SEZ  no excise is  applicalbe.

please clearify  the  issue  with supporting  clearification from dept if any..

Thakkar M.

AI Summary

No CENVAT Credit Reversal Required for SEZ Sales by Job Worker Under Rule 6; Treated as Exports. A query was raised regarding the clearance of goods from a job worker, B, to a Special Economic Zone (SEZ) customer, C, by the original buyer, A. The issue involved whether B needs to reverse the CENVAT credit since SEZ transactions are exempt from excise duties. An expert clarified that under Rule 6 of the CENVAT Credit Rules, reversing the credit is unnecessary as sales to SEZs are treated as exports. Another participant inquired about the documentation and formalities required for excise compliance, seeking further guidance via email.