TaxTMI 
TaxTMI 
Dear Sir,
Please explain can we clear Finished goods from our processor i.e. Job worker to our factory on payment of duty and further can we avail Cenvat credit of the same.Thanks and regards.
FG material transfer from Processor(Manufacturer) to Factory (Manufacturer)
31 Jan 2017 
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Cenvat credit eligibility depends on whether finished goods from a job worker are further processed or duty conditions are met.
Clearance of finished goods from a job-worker to the principal manufacturer on payment of excise duty raises questions about duty liability and Cenvat credit entitlement; the principal remains the liable manufacturer, exemptions may apply under notification where the principal undertakes specified use or duty payment, and credit availability depends on whether further manufacture occurs and whether the job-worker used substantial own inputs or Cenvat credit in producing the goods. (AI Summary)
Clearance of finished goods from a job-worker to the principal manufacturer on payment of excise duty raises questions about duty liability and Cenvat credit entitlement; the principal remains the liable manufacturer, exemptions may apply under notification where the principal undertakes specified use or duty payment, and credit availability depends on whether further manufacture occurs and whether the job-worker used substantial own inputs or Cenvat credit in producing the goods. (AI Summary)