TaxTMI 
TaxTMI 
| 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 |
LEVY OE EXCISE DUTY ON JOB WORK (INTER-UNIT TRANSFER)
31 Oct 2014 
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Cenvat credit entitlement can be claimed on inter unit job worked goods where duty was paid, based on job worker invoice.
Where a job worker removes job worked goods, rule 4(5)(a) permits removal without payment of duty; if duty is paid, the principal manufacturer/transferee may avail Cenvat credit on the basis of the job worker's invoice, subject to documentary compliance under rule 9 of the Cenvat Credit Rules, 2004. (AI Summary)
Where a job worker removes job worked goods, rule 4(5)(a) permits removal without payment of duty; if duty is paid, the principal manufacturer/transferee may avail Cenvat credit on the basis of the job worker's invoice, subject to documentary compliance under rule 9 of the Cenvat Credit Rules, 2004. (AI Summary)