cenvat credit of Excise Duty paid by the job worker(Repairs)

[Venkateswrarao Karuturi]

If Company ABC (Registered Company under Excise Act) sends goods to Company XYZ (Unregistered Company under Excise Act) vide Invoice no. 1. Now Company XYZ sends goods to Company PQR (Registered Company under Excise Act) for Repairs with a same invoice no. 1. So Can Company PQR can take a cenvat credit on the basis of invoice no. 1 which is issued by Company ABC to Company XYZ ?

[kiran pai]

Dear Sir, As per excise goods send there is no meaning. First clear this subject as send for what? Or Goods sold. If goods send for job work there is no need to raise the Invoice. Secondly if goods sold you must send the invoice with the material because ABC is an excise assessee. After receiving the goods by the company XYZ who is not a central excise assessee, and it is not neccessary to send the goods for job work to PQR through the invoice of ABC. It is a wrong procedure which is not in the Central excise Rule, the another party send the material to job work to third party on the first partys invoice. and under Cenvat Credit Rules it is wrong to take credit by PQR. If XYZ wants to send the goods for job work to PQR he can send through his challan. If PQR is a central excise assessee or not. It is not neccessary to follow the central excise rules by the non assessee of the central excise. So XYZ should not send the goods for job work to PQR on the basis of ABC record that is with the invoice of ABC.

[Surender Gupta]

Endorsement on invoice is not permissible. If PQR wish to avail the cenvat credit, XYZ should get itself registered and move the goods on its own invoice. But in case of job work, where ABC has to pay excise duty, no job worker is required to pay excise duty and hence not in requirement of availing cenvat credit.

AI Summary

Cenvat credit denied where goods routed via an unregistered intermediary without proper invoicing; registration or challan required. A job worker cannot take cenvat credit based on the principal's invoice when goods are routed through an unregistered intermediary; invoice endorsement is impermissible. The intermediary must register and issue its own invoice (or use a challan for job work) for the job worker to lawfully claim credit. If the principal pays the excise duty for goods sent for job work, the job worker need not pay duty or claim cenvat credit.