Passing on cenvat credit, Central Excise

[Jatinder Maan]

This has reference to Job work done by us. can we issue own excisable materail to the party for whom we are doing Job work and pass on cenvat credut by issuing invoice. Material in this case will be consumed by principal manufacturer and material will be procured by us.

Posts / Replies

[Mukesh Kumar]

Yes, there is no restriction in the cenvat credit rules for this kind of arrangements. You can pass the credit on material supplied to the principal either direct supply or through consumption during job working activity. In both the cases you can pass the credit. But, before passing such credit, you must be registered with central excise authorities.