Claim of cenvat credit, Central Excise

[madhavavn]

can a jobworker claim cenvat credit is a job worker liable for service tax job worker purchases paints uses some consumables labour on parts recd from main supplier and then send back the parts after painting does this amount to manufacture or works contract and consequent impact of cenvat credit can he claim cvd on paints whcih are imported

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[Rama Krishana]

only in certain circumstances certain processes of painting of an items is treated as deemed manufacture. The list of deemed manufacture is available in chapter 5 of Central Excise Manual on this website. However, in general (barring the cases of deemed manufacture) the painting activity is subject to service tax. Where as the question of cenvat credit is involved, yes, if you pay service tax on this activity on the gross value including the value of material, you can take cenvat credit of cvd paid on inputs / material.