Loan licensee and Cenvat credit

[shaji thomas]

Whether a pharmaceutical company who is doing the job work of other units as loan licensee(discharging the duty on finished goods and maintaining common cenvat credit register)can utilize the cenvat credit of others for discharging the duty liability ontheir own clearances.? whether the accummulated cenvat credit of the suppliers(who is exporting the goods under bond) can be adjusted towards job charges to be collected after utilizing the same in their own clearances?

AI Summary

Pharmaceutical loan licensees can use Cenvat credit from others for excise duties, no separate records needed. A pharmaceutical company acting as a loan licensee and performing job work for other units can utilize the Cenvat credit of others to discharge its own duty liabilities. The company, being a manufacturer, is responsible for excise duty on goods it produces, whether for itself or others, and is entitled to related benefits. There is no requirement to maintain separate records for credit allocation between its own and others' manufacturing. The company can generally use the credit and claim a refund of excise duty for exports, provided all conditions are met.