CENVAT CRIDIT ON JOB WORK

[Guest]

Dear All,

We are in 100% EOU Unit. We are planing to go for JOB WORK at Excise registered Unit (Not EOU). There is a bulk quantity of the raw material to sent the Job Worker. So we are sending the Raw material by purchasing in Duty paid and send the material directly from the dealer to Job worker premises.

Kindly clarify weather we are eligible to take the CENVAT Credit on said raw material. and also please clarify the wastage and Spent solvent should return to our premises after the compleation of job work. or it can sold by the job worker. if it can be sold by the Job worker is there any need of submission of such documents to Excise Department.

Thank you

M.Pentaiah

[Ganeshan Kalyani]

In my view you can take the credit on the raw material sent from supplier premises to Job worker premises. Thanks.

AI Summary

CENVAT credit eligibility on raw materials sent to job workers affirmed; treatment of returned waste and spent solvents unresolved. Advice indicated that CENVAT credit may be availed on duty-paid raw materials sent by direct supplier delivery to an excise-registered job worker, treating such inputs as sent out for job work. The response did not resolve whether wastage or spent solvent must be returned or may be sold by the job worker, nor the excise documentation required for such disposal.