job work cenvat credit

[yateen vyas]

SIr,

We are Tyre manufacturing company and we are using Tyre tube and flap as a complete product.We are procuring tube and flap on job work basis.We are sending raw material by taking cenvar credit and received back tube from job worker.Final product tube is cleared from our factory along with Tyre.

Now deptt is making an objection and denying us from taking cenvat credit on raw material sending to job worker.

Please provide your view is that right ?

Rgds

Yateen vyas

[Tax Baniya]

Yes principal manufacturer can take the Cenvat credit, if the goods is return with in 180 days from the job worker. click here for detailed provisionjob-work-provision-under-central-excise

[PAWAN KUMAR]

Yes, The reply is correct.

[MUKUND THAKKAR]

Sir,

you just mention that dept is making objection and denying to you for taking cenvat credit, but exactly not mention on which ground.. if you are simply sending the raw material for job work and coming back to you in such situation dept is never object if your documents are in order. please mention sepecific ground of objection so any body can guide you on right way..

AI Summary

Cenvat credit on job-work: allowed where principal receives goods back within the prescribed return period and records are complete.
The principal manufacturer may avail Cenvat credit on raw materials sent to a job worker provided the goods are returned within the prescribed return period and the required documentary records, invoicing and job-work documentation are in order; departmental denials usually arise from specific procedural failures rather than the use of a job worker per se.