Whether cenvat credit availed on Capital goods used for job work process for other person.

[samiuddin ansari]

Sir,

I would like to know as to whether I have to reverse the Cenvat credit availed on Capital Goods i.e. VMC Machines proportionatly, if used for the purpose of job-work process on goods sent by another manufacturere as well as for the process of our own manufactured goods. Kindly, through some light on the issue with supportive provisions of laws or Circulars/clarifications issued by the Board.

Please solicit necessary guidance in to the matter.

Thanks with regards,

(S.N.Ansari)

AI Summary

No Need to Reverse Cenvat Credit on VMC Machines Used in Job Work per Cenvat Credit Rules, 2004. A discussion on a forum addresses whether Cenvat credit on capital goods, specifically VMC machines, used for job work processes should be reversed if used for goods from another manufacturer and for the company's own goods. Participants clarified that under the Cenvat Credit Rules, 2004, and GST regulations, there is no requirement to reverse the credit for capital goods used in job work. It is highlighted that job workers can take credit if they pay duty on behalf of the principal manufacturer, but not if they avail exemptions or purchase from unregistered dealers. The discussion also notes that pre-GST rules allowed full credit on capital goods used in both exempted and dutiable goods.