Cenvat Credit availed in respect of Job Work undertaken

[Emco Ltd.]

Dear All Experts,

We are manufacturer of excisable product. Now, we want start Job work from other excisable Manufacturer due to utilization of spare capacity of Unit.

My query is as under.

1. Principal Manufacture cleared their goods on payment of duty then Service tax is applicable on Job work goods or otherwise ?

2. If we are consuming Excisable Input material during the Job work activity then whether we should reversed excise duty on consumed material or otherwise ?

3. We have also referred 2005(183) E.L.T. 353 (Tri. LB) Sterlite Industries Ltd. V/s Commissioner of Central Excise - Pune and 2009= 2004 (12) TMI 108 - CESTAT, MUMBAI (244) E.L.T. 337 (Bombay High Court) = 2009 (11) TMI 111 - BOMBAY HIGH COURT judgment of Tata Motors Ltd V/s union of India, both judgment reflected that Cenvat Credit does not required to be reversed on job work material undertaken.

Kindly enlighten the above issue.

Regards

For, Emco Limtied

Amit Parmar

AI Summary

Emco Ltd. seeks clarification on Cenvat Credit, service tax, and excise duty issues related to job work processes. Emco Ltd., a manufacturer of excisable products, seeks guidance on Cenvat Credit related to job work undertaken from another excisable manufacturer. They inquire if service tax applies when the principal manufacturer clears goods on duty payment and whether excise duty should be reversed on consumed input materials during job work. References to legal judgments suggest that Cenvat Credit need not be reversed. Responses clarify that service tax is not applicable if excise duty is paid and that excise duty on consumed materials need not be reversed if further processes are conducted and goods are cleared on duty payment.