TMI BlogWhether cenvat credit availed on Capital goods used for job work process for other person.X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, I would like to know as to whether I have to reverse the Cenvat credit availed on Capital Goods i.e. VMC Machines proportionatly, if used for the purpose of job-work process on goods sent by another manufacturere as well as for the process of our own manufactured goods. Kindly, through some light on the issue with supportive provisions of laws or Circulars/clarifications issued by the Board. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Please solicit necessary guidance in to the matter. Thanks with regards, (S.N.Ansari) - Reply By Rajagopalan Ranganathan - The Reply = Sir, Please clarify whether this question is related to Cenvat Credit Rules, 2004 or CGST Act, 2017. - Reply By Himansu Sekhar - The Reply = If you have purchased capital goods, there is no need to reverse the credit, job work under gst is not exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. - Reply By KASTURI SETHI - The Reply = I support the views of Sh.Himansu Sekhar, an expert. It is also a matter of common knowledge that job worker works for and on behalf of jobbee (Principal). For capital goods there is nothing regarding reversal on pro rata basis. - Reply By Himansu Sekhar - The Reply = Thank you sir - Reply By Ganeshan Kalyani - The Reply = You are generous sir. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the machinery of yours job worker is providing service to other party also. - Reply By KASTURI SETHI - The Reply = I am not generous. Regarding Capital Goods Govt. Is liberal. If we go into depth and x-ray ITC on Capital Goods is admissible. There is no denial on the ground some part is used by job worker and some part is used by principal. Such like restriction is in respect of input. - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By samiuddin ansari - The Reply = Sir, my question relates to Cenvat Credit Rules, 2004 i.e. Cenvat credit availed on Capital Goods used for a job -work process of another i.e. goods supplied by another registered or non-registered person. Thanks with regard, - Reply By KASTURI SETHI - The Reply = It is a matter of common knowledge that if any manufacturer / job worker uses capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in or I n relation to manufacture of dutiable final product he can take credit. So if a job worker pays duty on behalf of principal manufacture , the job worker can take credit on Capital Goods. If job worker does not pay duty and return the job worked goods to the principal availing exemption under notification no. 214/86 as amended, he cannot take credit. If you purchase capital goods from unr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered dealer, you cannot take credit. You may have paid duty. There is no question of taking credit by unregistered job worker. - Reply By KASTURI SETHI - The Reply = In pre-GST era, if capital goods were partially used in manufacture of exempted goods and partially used in dutiable goods, full credit on those capital goods was allowed. - Whether cenvat credit availed on Capital goods use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for job work process for other person. - Query Started By: - samiuddin ansari Dated:- 15-9-2017 Service Tax - Got 9 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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