LEVY OE EXCISE DUTY ON JOB WORK (INTER-UNIT TRANSFER)

[S.C. WADHWA]

A unit of a Pvt. Ltd. Co. made job work for another unit of same

company. After job work, materials transferred vide invoice

bearing 'transfer of goods to branch office'. Excise duty was levied

on job work.

Query is :

Please mention how will the transferree book in its account

i.e. how transferre can avail cenvat of excise duty

since it is inter-transfer of goods i.e. it is neither sale

nor job work

AI Summary

CENVAT Credit Eligibility Clarified: Principal Manufacturer Can Avail Credit Using Job Worker's Invoice Per Rule 4(5)(a) & Rule 9. A private limited company conducted job work for another unit within the same company, transferring materials via an invoice labeled 'transfer of goods to branch office,' with excise duty levied on the job work. The query sought guidance on how the transferee could book this in its accounts and avail CENVAT credit, as the transfer was neither a sale nor a job work. Respondents referred to sub-rule 5(a) of Rule 4 and Rule 9 of the CENVAT Credit Rules, 2004, indicating that the principal manufacturer can avail CENVAT credit based on the job worker's invoice.