Passing on cenvat credit

[pardeep bisht]

This has reference to Job work done by us. can we issue own excisable materail to the party for whom we are doing Job work and pass on cenvat credut by issuing invoice. Material in this case will be consumed by principal manufacturer and material will be procured by us.

[Mukesh Kumar]

Yes, there is no restriction in the cenvat credit rules for this kind of arrangements. You can pass the credit on material supplied to the principal either direct supply or through consumption during job working activity. In both the cases you can pass the credit. But, before passing such credit, you must be registered with central excise authorities.

AI Summary

Cenvat credit transfer permitted for job work inputs when supplied or consumed, subject to registration and compliance. The cenvat credit framework does not prohibit passing credit where a job worker issues excisable material to the principal or consumes material during job work; credit may be passed either by direct supply to the principal or through consumption in the job-working activity. A mandatory condition is that the person passing the credit must be registered with the central excise authorities, and transfers remain subject to the usual cenvat rule compliance requirements.