IS CAS 4 CERTIFICATE REQUIRED ( RULE 8 OF VALUATION)

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Dear Sir,

We had sent a intermediate product to one of our processor(Job worker) under rule 8 Valuation on duty payment alongwith with CAS4 certificate and he had availed credit on that , but the product has remained unused, So if the job worker has to sell such product without processing, So whether he has to do valuation under rule 3(5) of Cenvat credit rules 2004, by reversing full credit availed on that product, IF yes then whether for such clearance is it required to issue CAS 4 certificate again by the processor at the time of sale of such products.

AI Summary

Clarification: CAS-4 Certificate Not Needed Under Rule 8 for Unused Intermediate Products Sent to Job Worker A discussion on whether a CAS-4 certificate is required under Rule 8 of the Central Excise Valuation Rules when an intermediate product is sent to a job worker and remains unused. It was clarified that sending an intermediate product to a processor does not qualify as captive consumption, thus Rule 8 is not applicable. The product should be valued at normal transaction value, and a CAS-4 certificate is unnecessary. The processor can avail credit on the duty paid. It is suggested to pay duty under Section 4 of the Central Excise Act, not Rule 10A, as no job work was performed.