Cenvat credit on Jobwork

[pardeep bisht]

Can a asseesee avail the cenvat credit on the some raw material used by themself for job work of Export Oriented unit . As per rule 6(6) of cenvat Credit rule no need to reverse the credit of clearance to EOU. Please give your opinion with relevant rule , notification and case law at the earliest

AI Summary

Clarification on CENVAT credit: Job workers must reverse credit on materials used for EOUs per Rule 6(6) exception. An individual inquired whether an assessee can avail CENVAT credit on raw materials used for job work for an Export Oriented Unit (EOU) without reversing the credit, referencing Rule 6(6) of the CENVAT Credit Rules. The respondent clarified that while Rule 6(6) states that clearances to EOUs are not considered exempted goods, this does not apply to job workers. The job worker must reverse the CENVAT credit on materials used during the job work process, as these are not considered clearances under the rule.