Material for job work

CENVAT credit procedures allow sending materials for jobwork under prescribed rules or notification with commissioner permission.
Sending materials for jobwork may be effected either by removal under Rule 4(5)(a) of the CENVAT Credit Rules or by following the Notification No. 214/86 procedure; permission from the jurisdictional Assistant Commissioner or Commissioner can be obtained if required. Rules 16(1), 16(2) and 16(3) govern bringing back duty paid final goods for repair, reconditioning or similar processes: Rule 16(1) permits return as inputs with entitlement to CENVAT credit, Rule 16(2) mandates reversal of credit where the process is not manufacture, and Rule 16(3) allows the Commissioner to grant relief where compliance is difficult. (AI Summary)