IS CAS 4 CERTIFICATE REQUIRED ( RULE 8 OF VALUATION)

[Asked by Guest]

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

Captive consumption principle not triggered for job work transfers; transaction value governs valuation and CAS 4 not required.
Rule 8 applies only to captive consumption (inter unit consumption) and does not cover clearance of intermediate goods to a processor under job work; such transfers should be valued by normal transaction value with duty paid accordingly, CAS 4 is not required, and the processor may avail and utilise credit of duty paid and adopt the transaction value on resale.