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TMI BlogCenvat credit on JobworkX X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit on Jobwork X X X X Extracts X X X X X X X X Extracts X X X X ..... on with relevant rule , notification and case law at the earliest Reply By Dilip Darji: The Reply: I understand that EOU is sending some material for job work to DTA. During the process of job work at DTA, Job worker is using some material and the question is that whether Job worker is required to reverse CENVAT Credit on the material used by him, during Job work activity. Rule 6 (6) of CENVAT Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit Rule speaks that the clearances to EOU, not to be treated as exempted goods. Meaning thereby that if the goods are supplied by DTA supplier to EOU, it will not be treated as exempyted goods and DTA supplier would be entitled to avail CENVAT Credit, eventhough duty has not been paid towards the goods supplied to EOU. The provisions of Rule 6(6) talks about clearance and the despatches made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DTA job-worker to EOU, is nothing but a removal/return of goods received for the purpose of job-work.Therefore, it is not a clearance and therefore not covered under Rule 6(6) of CENVAT Credit Rules and Job worker is required to revese CENVAT Credit on the material used by him in job work process.
Regards.
DILIP DARJI. X X X X Extracts X X X X X X X X Extracts X X X X
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