| Date: |
20-03-1997
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| Notification No: |
Central Excise Circular No 306/1997
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding availability of Modvat credit on inputs used by job workers in job-working contracts
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Regarding availability of Modvat credit on inputs used by job workers in job-working contracts
Circular No. 306 dated 20th March 1997
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.
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