Diffrent between Jobwork rule 214/86 and Rule4(5)(a)

[aSandeep Upadhyay]

Dear all experts Sending of More than one Inputs(after availment of cenvat credit) to Jobworker for further process and received processed goods to principle mfgr and princple Mfg sale it on payment of duty. What rule is apply for above procedure? Rule 4(5)(a) or rule 214/86.Required to submitt undertaking/ intimation to Jurisdictional asst.commissioner of Jobworker? for above procedure? Request to give guideline in this matter. Thanks Sandeep

[Sailapati Bhattacharyya]

Main difference is that in Rule 4(5)(a) of the Cenvat Credit Rules, 2004, condition like intimation or permission, undertaking etc., are not attached; whereas in the Notification- 214/86-CE some condition has been attached.

 

Follow Rule 4(5)(a) of theCenvat Credit Rules, 2004, normally no undertaking, no intimation.

AI Summary

Cenvat credit for jobwork: use Rule 4(5)(a), no undertaking or intimation normally required; follow procedure accordingly. The operative distinction is procedural: Rule 4(5)(a) of the Cenvat Credit Rules, 2004 does not attach conditions such as prior intimation, permission or undertaking to the principal manufacturer for sending inputs to a jobworker, whereas the older notification contained explicit conditional requirements; where the transaction fits within Rule 4(5)(a), no separate undertaking or intimation to the jurisdictional officer is normally required.