Dear Experts,
I have some confusion related to job work and excise. I have a query that there is our two units (e.g. A and B) A send the material to B for job work and same B return back after job work. In this case I want to know the treatment for excise at the time of material purchase by A ,sent to B and return back by B. and what are the treatment for cenvat credit.
Regard
Vikram Singh
Cenvat Credit Rules: Materials Sent for Job Work Between Units A & B Must Return in 180 Days Per Rule 4(5)(a). A query was raised regarding the excise treatment and Cenvat credit for materials sent between two separate units, A and B, for job work. It was explained that if A and B are separate companies, Rule 4(5)(a) of the Cenvat Credit Rules 2004 applies. Unit A can send materials to B without paying excise duty if the processed materials return within 180 days. Failure to comply requires reversing the Cenvat credit. Job workers must maintain records but do not need registration or to file returns. Procedures for duty payment and clearance were detailed, including handling scrap and documentation requirements. (AI Summary)
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