Claim of cenvat credit

[madhavvan n]

can a jobworker claim cenvat credit is a job worker liable for service tax job worker purchases paints uses some consumables labour on parts recd from main supplier and then send back the parts after painting does this amount to manufacture or works contract and consequent impact of cenvat credit can he claim cvd on paints whcih are imported

[Guest]

only in certain circumstances certain processes of painting of an items is treated as deemed manufacture. The list of deemed manufacture is available in chapter 5 of Central Excise Manual on this website. However, in general (barring the cases of deemed manufacture) the painting activity is subject to service tax. Where as the question of cenvat credit is involved, yes, if you pay service tax on this activity on the gross value including the value of material, you can take cenvat credit of cvd paid on inputs / material.

AI Summary

Job Workers Can Claim CENVAT Credit on CVD Paid if Service Tax is Paid on Gross Value, Including Materials. A query was raised regarding whether a job worker can claim CENVAT credit and if they are liable for service tax when purchasing paints and using consumables and labor on parts received from a main supplier. The response clarified that painting is generally subject to service tax unless it qualifies as deemed manufacture, as specified in Chapter 5 of the Central Excise Manual. If service tax is paid on the gross value, including materials, the job worker can claim CENVAT credit on the countervailing duty (CVD) paid on inputs or materials.