Cenvat Credit

[Asked by Guest]

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

AI Summary

Cenvat credit for job work: credit preserved if inputs and scrap are returned within the prescribed period, else reversal required.
Cenvat credit on inputs sent to a job worker is preserved if the principal records particulars, ensures processed goods (including scrap) are returned within the prescribed period, and maintains required documentation; failure to retrieve goods within that period requires reversal of the Cenvat credit, which may be reclaimed when materials are later brought back.