LEVY OE EXCISE DUTY ON JOB WORK (INTER-UNIT TRANSFER), Central Excise

[S.C. WADHWA]

A unit of a Pvt. Ltd. Co. made job work for another unit of same

company. After job work, materials transferred vide invoice

bearing "transfer of goods to branch office". Excise duty was levied

on job work.

Query is :

Please mention how will the transferree book in its account

i.e. how transferre can avail cenvat of excise duty

since it is inter-transfer of goods i.e. it is neither sale

nor job work

Posts / Replies

[Naveed S]

Sir,

Please refer sub rule 5(a) of rule 4 of cenvat credit rules, 2004 for necessary clarification.

Also, cenvat credit can be availed on the basis of the documents prescribed under rule 9 of cenvat credit rules, 2004.

[AAKASH KUMAR]

As per rule 4(5)(a) job worker can remove the job worked goods without payment of duty. Even then if duty has been paid then principal manufacturer can avail cenvat on the basis of invoice of job worker.