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.

AI Summary

CENVAT Credit Transfer Allowed for Excisable Materials Used in Job Work if Registered with Central Excise Authorities. A query was raised regarding the possibility of passing on CENVAT credit for excisable materials issued during job work. The questioner asked if they could issue such materials to a principal manufacturer and pass on the credit via invoice, with the materials being procured by them and consumed by the principal. The response clarified that there are no restrictions in the CENVAT credit rules for this arrangement, allowing the credit to be passed either through direct supply or consumption during job work, provided the entity is registered with central excise authorities.