Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs, New Delhi
Subject: Availability of Modvat credit on inputs used by job workers in job-working contracts – Regarding.
Instances have come to the notice of the Board where job-workers have availed the credit on inputs used for job-work done by them under the provisions of rule 57F(4) of the Central Excise Rules, 1944.
2. Under the provisions of rule 57F(4), a manufacturer can get the job-work done on his inputs or on partially processed inputs in terms of the provisions of rule 57F(4) of the Central Excise Rules, 1944. In such cases duty liability is required to be discharged by the manufacturer and not by the job-workers. Accordingly job-worker is not eligible to avail credit in such cases.