Raw-materials sent directly at Job-worker premises

[Pradeep Jain]

Dear Sir,

To avoid the  exra transportation cost , we have been sending the rawmaterials from suppliers primises to Jobworker Premises  without mentioning delivery to consignee(Jobworker) because either the Job worker in not registered under Central Excise or not willing to avail CENVAT Credit on our Rawmaterial .

After getting the raw-materials , Jobworker sends us our  Suppliers Excise Invoice. On the basis of acknowledgement given by our Job-worker the same Rawmaterials theoritically entered in our books GRN is prepared and CENVAT is availed.  After that retunable challan is issued by us under rule  Cenvat Credit Rule, 2004 u/r 4(5)(a). In that case  date of preparation of GRN  and the Challan ,of  the above said goods acknowledgd by our Jobworker , becomes late 6-7 days.

Is it appropriate procedure ? Kindly advice.

Regards

Pradeep Jain

AI Summary

Cenvat credit timing: credit allowed only upon receipt of processed goods; excisable challan can cover job work movements.
Direct dispatch of inputs to a job-worker is permitted, but cenvat credit cannot be availed until the principal receives the inputs back and records them (GRN). Movement and return should be documented by a returnable/excisable challan under the excise challan mechanism to validate transfers for job work and ensure credit is taken only upon lawful receipt.