Availment of Cenvat Credit

[Asked by Guest]

Can we directly send inputs to the jobworker place for doing jobwork and on the same can we cenvat credit. Please clarify.

[Madhukar N Hiregange]

Yes raw materials and components parts can be directly sent to the job workers premises. After operations the same would be received at the factory of the principal. At this point of time the credit of the central excise duty would be available as input credit is not permissible without receipt in normal course. It maybe preferable that returnable delivery challans be raised for materials recived at JW premsies stating that materials directly recived at JWs place.

AI Summary

Cenvat credit: inputs sent directly to jobworker permitted, credit available only upon receipt by principal at factory.
Cenvat credit on inputs and component parts dispatched directly to a jobworker is allowable, but the credit is available to the principal only upon receipt of those inputs at the principal's factory; mere direct receipt at the jobworker's premises does not permit availing input credit in the absence of receipt in the normal course. It is advisable to raise returnable delivery challans noting direct receipt at the jobworker location to document the movement and preserve credit eligibility.