Clarfication required on job work

[gowri shankar]

Dear Sir,

We are manufacturing Kraft Paper Reels ranging from 80 GSM to 180 GSM we are going to send our Kraft Paper Reels to Job worker for convert into Kraft Paper Cores.

My Doubts are

1) Is there any permission to be obtained from Jurisdictional Asst./Deputy Commissioner ? for sending job work and what are the relevant rules/notifications/circulars?

2) If we purchase semi Kraft Reels with some other mills on payment of duty and send as such to the job worker for conversion of semi kraft reels in to paper cores.  Is there any provisons relating to this ?

3) Can we claim cenvat credit against the purchase of semi kraft reels from other miils? 

AI Summary

Kraft Paper Reels: No Permission Needed for Job Work Under Rule 4(5)(a), CENVAT Credit Eligible for Inputs A manufacturer of Kraft Paper Reels inquired about the procedural requirements for sending their reels to a job worker for conversion into Kraft Paper Cores. They sought clarification on whether permission from the Jurisdictional Assistant/Deputy Commissioner was necessary, the applicability of rules or notifications, and the eligibility for CENVAT credit when purchasing semi Kraft Reels from other mills. Responses indicated that if the reels are not sent under Notification 214/86, no permission is needed, and goods can be sent under Rule 4(5)(a) of the Cenvat Credit Rule, 2004. CENVAT credit can be claimed if the reels are received as inputs.